Maximizing the impact of the new pension scheme in Nigeria: issues, prospects, and challenges.

Abstract

The paper serializes the Nigeria Pension Reform Act 2004 and discusses the likely impact on the Nigerian employees. The paper submitted that the reform poses a demographic challenge in moving from the defined benefit to defined contribution. It opined that the new system has winners and losers. The paper identified the challenges for the future access to include: social implications from employees, higher life expectancy and lower fertility, increase population of pensioners and possibility of lower pensions compared to higher cost of living, etc. The paper concludes that the success of the scheme depends on the effective partnership between members, trustees, employers, and professional advisers (PFAs). Post retirement success in the new dispensation rests on the employers in terms of equipping the employees on effective management personal finances.