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  • Writer's pictureDamilola Agubata

How Much Do You Need to Retire in Nigeria?

Almost everyone believes that you need a lot of money to retire comfortably in Nigeria. And there are two reasons why this might be true: naira depreciation and inflation.

After working for an average of 30 years, it is natural to desire a stable and gracious life in retirement. Therefore, the important question is: how much do you need to retire in Nigeria?

Some financial experts have shared their opinions in articles and essays. Here are a few of them.

How Much Do You Need to Retire in Nigeria?
How Much Do You Need to Retire in Nigeria? Credit: Oak Pensions Limited

N80m for 20 years

Financial analyst, Michael Olafusi says since the official retirement age is 65, then you need about N80m in today’s purchasing power in your retirement and investment accounts. Olafusi posits this because he believes that the life expectancy is at 85, therefore, anyone who retires at 65 has the potential to live for an average of 20 years.

Currency valuation and inflation are the most important economic indicators

For Seun Oyadiran, Digital Banking Specialist, predicting how much he would need to retire happily by 2049 is based on the economic indicators: currency valuation and inflation. Therefore, if his present monthly income is N300,000, he would need to save an average of N1.3m monthly for the next 25 years when he factors in inflation in addition to the fact that the Nigerian currency depreciates by 6% annually.

50-80% of pre-retirement income

According to a report by the National Pension Commission (PenCom), retirees need about 50-80% of their pre-retirement income to maintain their standard of living. This is because they may have fewer expenses during retirement, such as no commuting to work or paying for work-related expenses.

Save more than 10%

A good way to start preparing for retirement is to be diligent and consistent with saving 10% of your monthly income. But you should not stop there.

Financial advisors recommend saving between 15% to 20% of your pre-tax monthly income for retirement.

But you may need to set aside as much as 20% of your salary if you're starting your retirement savings journey late.

Start saving now

All financial experts will agree that to retire comfortably in Nigeria, you should not delay in starting your retirement savings journey. If you haven’t started, you should start now without any delay. Register a Retirement Savings Account (RSA) with Oak Pensions where your monthly contributions can be saved to give you a comfortable life when you retire. To register, call the Marketing Manager at 09087448661 or send an email to


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