I want you to think back on the last time you had to make an important life decision. Did you just throw a coin and go with whatever the coin dictated? I strongly believe you did not. I assume that as a serious-minded adult looking to advance your life, you must have considered a myriad of factors before making that decision. You must have weighed its pros and cons, and thought of its long-term benefits to you and ultimately its effect on your life. I must tell you, that this strategy applies to every life decision you have to make, be it the choice, of course, to study in the university or the choice of who to marry. In fact, one of the most important decisions you're going to make in life is going to be about your retirement, and it is important to plan, prepare and research adequately before selecting a manager for your pension funds.
I will share with you four important questions you need to ask yourself and others before choosing a pension fund administrator(PFA), and why it is important to ask these questions.
1. What are my retirement goals?
It is popularly said that when the purpose of a thing is unknown, abuse is inevitable. You may be surprised to realise that this also applies to your retirement funds. You have to ask yourself: why do you need to save for retirement? What exactly do I hope to achieve with my retirement funds? How much money do I need to sustain my lifestyle post-retirement? On the surface, the answer may seem obvious enough, but I would like you to sit back and think deeply about these questions. It is pertinent to know in detail your income level, your retirement plans, and how much you're channelling towards funding those plans.
You have to ask yourself: why do you need to save for retirement? What exactly do I hope to achieve with my retirement funds? How much money do I need to sustain my lifestyle post-retirement?
When you have reached a consensus on these questions, you would find that it becomes clearer to you the kind of retirement account you need and the kind of pension fund administrator that is fit to provide such a service for you. At Oak pensions, we offer a variety of retirement plans tailored to meet your peculiar retirement needs, whatever they may be. We are fully aware that the realities of each person might vary and so will their retirement plans. This has ensured that the products and services we offer are in line with that.
2. What is the Pension Fund Administrator's track record?
When I talk about a track record, I am talking about a company's reputation. Their history over the years. Their financial performance. Their peak and valley moments. It is important to research these facts as it gives you a peek into the possible future performance of the company. This information helps you predict how well your funds will do with such an administrator and the kind of returns you can expect. It also helps you determine how safe and secure your funds are and how trustworthy and dependable the company is.
3. How Flexible and Up-to-date Is the Pension Fund Administrator?
When I talk about flexibility, I am talking about how easy it is to start or stop regular contributions. I am also talking about the possibility of making lump-sum payments. In November 2020, the National Pension Commission (PENCOM) opened the Retirement Savings Account transfer window. Oak Pensions promptly responded to the pension transfer window opening by publishing relevant information necessary for potential customers to be able to make the best retirement and financial decisions. Oak Pensions also regularly provides retirement advisory services and quality financial and retirement information on their blog and social media pages.
4. What Are The Returns On Investment(ROI) For The PFA?
Last but not the least, it is critical to know the ROI for your potential PFA of choice. When you've done your necessary research as advised in my second question to ask, whatever information you obtain will help you select a PFA wisely. It is unwise to lock your money up in a pension fund that yields little to no interest rate and even depreciates over time. Oak pensions offer one of the most competitive ROI rates in Nigeria and we are constantly searching for ways to go even higher. It is also noteworthy to ask how easy it is for you to obtain your retirement funds when you need them.
I would like to leave you with a few words. Retirement is no joke and it is necessary for everyone to make plans ahead for that beautiful period. If you fail to plan, you are simply planning to fail.
Retirement is no joke and it is necessary for everyone to make plans ahead for that beautiful period. If you fail to plan, you are simply planning to fail.
ABOUT THE AUTHOR:
Emmanuel Olabode is a writer, actor, and filmmaker. He is the Founder/Creative Director of The OYA Company, a media and entertainment company that produces original content across digital, film, TV, radio, and social media. In 2017, he worked as a Digital Media Consultant to the Chief Press Secretary under Governor Godwin Obaseki, Governor of Edo State. Emmanuel's writing credits include several articles for Business Day, OYA Magazine, and YNaija.