NIGERIA'S PENSION SCHEME FACES CHALLENGE 10 YEARS HENCE.

Although the Nigerian compulsory pension scheme continues to grow in terms of number of retirement savings accounts, the real challenge of funding pensioners starts ten years hence.

According to statistics released by the National Bureau of Statistics (NBS),  that is when the bulk of today's savers begin to grow old and retire.

The number of retirement savings accounts at 7240196 grew by 1.59% in the third quarter on second quarter level and by a healthier 7.34% and 16.6% on 2015 and 2014 third quarters respectively.

Indeed, the growth in savings accounts has been continuous quarterly since 2014 from the available figures.

However, the bulk of the current savers are aged between 30 and 59 years meaning that the scheme may not have much challenge funding pensioners until these people grow old.

As per the figures, they make up 83.9% of the current retirement savers as 39% of total savers were aged 30 to 39; 27.4% were aged 40 to 49 and 17.5% were within the 50 to 59 bracket.

The pressure will be less provided more currently under- 30s join the scheme and if investment managers of the different 40951 currently approved pension schemes record high enough return on investment.

Presently, says the report, under 30s make up about 7% of retirement savers since many of them are either still searching for job; trying their hands at being self employed or still schooling.

Of the above 7m retirement savers, 53.6% or 3883321 are from the private sector compared to 25.7% or 1860499 from federal government employment and and 20.7% or 1496426 from state government civil service.

About 28.8% of the savers are female compared to 71.2% male.

The gender lopsidedness is far less so amongst state employee savers with 56.3% or 842071 being male and 654355 or 43.7% female.

Amongst the federal service savers 73.1% or 1359489 were males compared to 26.9% or 500960.

As for savers from the private sector, 76% or 2951932 were male while 24% were female.

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