Retirees are falling apart as the monthly benefits hitting their accounts from their Pension Fund Administrators is being tragically reduced in value by the unending rise in inflation. While the National Pension Commission PenCom publish the quarterly reports of the pension industry announcing the trajectory rise in participation and remittances, retirees groan the trajectory decline in the value of monthly benefits.
The truism of different strokes for different folks was captured in the Q2 Quarterly Report of PenCom, “Nevertheless, participation in the pension fund industry has continued its upward trajectory despite the rising rate of inflation. Retirement Savings Account registrations increased from 89,061 in Q1 2024 to 100,063 in Q2 2024. Consequently, remittance of pension contributions increased by 20.26% during the quarter from N314.17bn in Q1 2024 to N377.83bn in Q2 2024. Furthermore, pension fund assets witnessed a 4.17% growth from N19.66tr as at Q1 2024 to N20.48tr as at Q2 2024,” the report stated.
Deferring from PenCom loud claps is the low but reverberating expression of a retiree, “This is not reflected on the pension paid out to the pensioner. The value to someone who is receiving a pension of N40,000.00/ monthly as at December 2023, has dropped to N18,000.00/ monthly.” Another exasperated retiree who sees no easing forthcoming but still bleak said, “What’s the way out for the heavily impacted pensioners (programmed withdrawal), including annuitants?”
Recent months has witnessed close to three decades all time high rising inflation. As at June 2024, the rate of inflation was 34.19%. Three months before, March 2024 it closed at 33.20%. Stats showed that it eased in August to 33% plus and there is no indication of further ease as the grip of rising inflation holds sway.
