Our plans for life after retirement – Nigerian workers

Preparing for retirement is as essential as planning for personal comfort. It requires foresight, consistent effort, self-discipline and willingness to make sacrifices. Given life’s uncertainties, salaried workers need to take deliberate actions to safeguard their financial stability. Though it may seem challenging, achieving retirement plans is crucial to maintaining a comfortable standard of living in later years.

Reports show that a significant number of retired civil servants at both federal and state levels face serious difficulties, especially in meeting their financial needs. Many link this struggle to persistent delay in the payment of pensions and gratuities, a problem they claim has, in some cases, contributed to the premature death of retirees nationwide.

In the face of the ongoing difficulties many retired civil servants face in terms of health challenges, upkeep and so on, Weekend Trust spoke to serving civil servants and workers in private organisations on their retirement plans.

How workers are preparing for life after retirement

For many workers in the Federal Capital Territory (FCT), retirement is no longer seen as a time to rest after years of service, but a stage that requires careful planning and alternative sources of income to survive the country’s harsh economic realities.

Inside story of Househelps from ‘hell’

Our ordeal in South Africa – Nigerian returnees

While some workers said they were investing in agriculture and small businesses ahead of retirement, others fear that poor salaries, inflation and uncertainty surrounding pension payments may frustrate their dreams.

Across ministries, agencies and institutions, workers who spoke with Weekend Trust said poor salaries, rising inflation, pension delays and economic hardship made it difficult for many civil servants to prepare adequately for life after active service.

While some said they were already planning businesses, farming and consultancy work ahead of retirement, others admitted that they had little confidence in the country’s pension system.

An Abuja-based banker, Shola Kayo, said although he was enrolled in the pension scheme, he had already begun making plans to venture into agriculture, particularly fish farming, after retirement. For him, agriculture remains one of the most dependable sectors for long-term survival in Nigeria.

“Nigeria may depend largely on oil and other mineral resources, but agriculture is what people cannot do without, and it hardly fails those who are committed to it,” he said.

Kayo disclosed that he had started acquiring landed property in rural areas to actualise his farming ambition, although the country’s economic situation has made the process difficult.

“As one is planning for the future, the economy is also dealing with us. What you bought at N100 last year is now close to N1,000. Still, with God’s help, I believe that things would improve. I already have land for farming, but I still want to expand it so that I can fully actualise my plan,” he added.

A chief nursing officer, Shehu Ibrahim Shika, also said his dream after retirement was to establish a standard nursing home where quality health care services could be rendered.

Having spent decades caring for patients since joining the medical profession at age 17, Shika explained that his experience gave him the technical knowledge and professional network needed to run a health care facility successfully.

“My ambition is to establish a well-equipped nursing home where patients can receive proper care. I know the professionals to engage for surgery, medical cases and nursing care, even if some of them work on a visiting basis,” he said.

However, he lamented that lack of financial resources may prevent him from realising the dream.

“The biggest challenge is funding. I cannot even afford a suitable site for the hospital, not to mention buying quality medical equipment and instruments. With the level of my income, most of my salary goes into family responsibilities, children’s education and social needs,” he explained.

Shika expressed concern over the pension system, saying many workers retire into hardship despite serving the country for decades.

“When I think about retirement and pension, it is frightening. Imagine retiring as a deputy director or a level 17 officer and the pension cannot even adequately take care of you alone, let alone your family,” he lamented.

He added that many retirees were often forced to seek jobs after retirement under poor conditions and low wages because pension earnings are insufficient.

For Halliru Balarabe, a court registrar at the Federal Capital Territory (FCT) judiciary, retirement presents an opportunity to diversify into multiple businesses.

Balarabe said he planned to invest in crop farming, livestock rearing and water supply business after leaving public service.

“One of the businesses I intend to pursue is farming because my family already has a background in it. But I want to modernise it through mechanised farming,” he said.

He added that his experience living in different parts of Abuja exposed him to the challenges residents face in accessing clean water, which inspired his interest in the water supply sector.

“I discovered that water supply remains a major problem in many communities, and it is an area the government has not fully addressed. I believe there are opportunities there,” he said.

Like others, Balarabe identified inadequate capital as the greatest obstacle to achieving his post-retirement plans.

“Funding remains the major challenge. I live in a rented apartment with my family, but one of my priorities before retirement is to build my own house,” he added.

A public servant, Ismael Musa, said thoughts about retirement had continued to trouble many workers because of uncertainty over what comes after years of dedicated service.

“I think about what one would do after retirement. The salary will stop. And there are benefits enjoyed while in service that you won’t get anymore,” he noted.

Musa said reports of retirees struggling to access pension had affected confidence in the system.

“If you can’t access the money on time or your family can’t access the money on time, you can’t achieve what you really want to achieve with the money,” he added.

He noted that many civil servants didn’t earn enough to prepare properly for retirement.

“They don’t. Compared to politicians and political appointees, civil servants deserve more allowances than what they get,” he said.

Emmanuel Oche, a senior civil servant, said retirement planning should begin from the first day a worker enters service.

“The day you get your appointment letter, you should also plan your exit,” he said.

Oche said that although many workers worry about retirement because of the economy, he believes preparation and personal investment remain important.

“I love agriculture. Everything that has to do with food production interests me. Before retirement, I will set up a business that has to do with agriculture,” he added.

He explained that while the contributory pension scheme had improved the situation compared to the old pension system, rising inflation and low wages remained major problems.

“If the salary is not enough, definitely the pension can’t go far,” he noted.

Another civil servant, Solomon Maigari, described the earnings of many Nigerian workers as inadequate for survival, let alone retirement planning.

“The best way I can describe what we earn is ‘slave wage’,” he said.

“By the time you collect salary, you only use it to settle debts. Sometimes it doesn’t even last to the end of the month. Civil servants don’t have savings,” he added.

Maigari said he had lost confidence in the pension system because many retirees still struggle despite years of service.

“I never want to depend on pension to survive after retirement,” he explained.

He said seeing retirees suffer had convinced him to begin searching for alternatives early.

“I have seen people work honestly for the government and retire into hardship. Some retirees are still calling former colleagues for N10,000 or N20,000 assistance,” he added.

Abubakar Oga said inflation and rising living costs had become serious threats to retirement plans.

“The salary is not something to write home about. The economy fluctuates every time, but salaries are not increasing. Once you retire, probably half of what you are earning is what will be given to you as pension,” he said.

Oga said that despite the hardship, he was already preparing to go into farming after retirement.

“We have land in the village, and I am planning towards that already. Once I retire, I will go back and do farming,” he said.

For Fatima Hayatu, retirement fears are tied to what she has personally seen happen to retirees.

“I know so many retirees struggling. Some even die because of boredom. Some fall ill. Before you know it, within a year after retirement, they are either sick or dead,” she said.

Hayatu said many workers now survive through borrowing because salaries no longer last.

“If I tell you that I don’t have a single kobo in my account now, you wouldn’t believe it. Today is just the seventh day of the month,” she added.

She said she hoped to establish a business before retirement because depending on pension alone is risky.

“I am hoping to have my personal business before retirement. I am not depending on pension,” she noted.

Another civil servant, Usman Al-Ameen, notes that many workers have already lost faith in the country’s pension system.

“The pension system of Nigeria is very dubious. You will see high-ranking civil servants retire, but their pensions can’t sustain them. Some pensioners still pay house rent with pensions that cannot feed them,” he added.

Al-Ameen said many workers no longer looked forward to retirement because of the suffering they had witnessed among retirees.

“No retiree plans his life after retirement based on pension because people already know the money may not come when needed,” he explained.

A lecturer, Raliya Aminu, said pension delay had discouraged many workers from relying solely on retirement benefits.

“I have heard about pensioners spending over five years before they could even get access to their first payment. You see them spending most of their youthful years working for the government, and when they retire, the government has nowhere to assist them,” she said.

Aminu said the situation had convinced many workers to search for alternative sources of income outside their salaries.

“You cannot even save anything because the salary is not enough to sustain you for one month,” she explained.

A senior public servant, Malam Abubakar Ibrahim, described retirement in Nigeria as a frightening phase for many workers.

“What happens after retirement is the question that bothers every public servant in Nigeria. People retire and stay for two or three years without getting gratuity. Even where pension comes, it is insufficient,” he said.

Ibrahim said corruption and poor economic management worsened the situation facing retirees.

“The system is riddled with corruption. If the government can deal with corruption and make the economy work for Nigerians, the pension system will improve,” he noted.

According to him, many workers survive because they continue working after retirement.

“So long as you can do something, I believe you should keep working,” he advised.

Workers interviewed said that retirement planning had become increasingly difficult because salaries were no longer enough to sustain many families amid rising food prices, transport costs, school fees and rent.

Also, Abdulmumini Giwa, a regional manager in a media organisation in Kano-Jigawa, plans to establish a fashion house where he intends to return to after he retires from active service.

In Benue State, many workers are beginning to look beyond monthly salaries by making early retirement plans centred on farming, small businesses and property development.

Some of them who spoke with our correspondent in Makurdi admitted that the glaring economic uncertainty and rising living cost biting harder across the country have stressed the need to plan early for retirement.

The respondents, cutting across both civil servants and private sector workers, said they were increasingly investing in side businesses and agriculture as safeguards against the harsh realities often associated with retirement in Nigeria.

One of them, a federal government worker, Veronica Azemba, said she had already begun preparing for life after active service through large-scale farming and poultry production.

“I have plans for retirement because life is quite difficult after that. I am already into large-scale maize and other crop farming, as well as poultry. I intend to expand it after retirement,” she said.

Also for Paul Ugah, a private sector worker, retirement planning begins from the first day of employment.

“The moment you start work is when you begin to prepare for retirement. I started early. I have built a house for my family and established a publishing outfit, which I hope would become my major source of income after retirement,” he said.

A retired banker and pensioner, Tamenor Kwaghzer, said early planning helped him transition smoothly into journalism after leaving the banking sector.

“I was already writing for foreign magazines while working in the bank. When voluntary retirement came up, I prepared ahead, and today, I am fully into journalism and have built my own industry. This is my final area of assignment in life if health and strength permit,” he noted.

However, incidentally, not all workers have concrete retirement plans.

A casual worker in the Benue State civil service, Ivy Malu, admitted that she was yet to think about retirement due to current economic struggles.

“For now, I have not really thought about retirement. I am still trying to establish myself first. Maybe I will think about it later,” she said.

Another private sector worker, Hiifan Shiaondo, said poor wages had made additional business ventures necessary, even before retirement.

“The work we do now can’t adequately feed or care for the family. My retirement plan is to go into buying and selling farm produce in large quantities, alongside animal farming to sustain retirement and old age,” he explained.

Similarly, Aloysius Umalo, a federal civil servant, described retirement planning as unavoidable in an unpredictable economy.

“Saving for the rainy day is not optional anymore, whether you are in public or private service. I am keeping money aside gradually, investing in livestock and crop farming and supporting my wife’s business. I am also trying to train my children quickly so that by retirement, I can focus on caring for my wife and myself,” he said.

Another worker nearing retirement, Henry Iorkyase, said his focus was on securing shelter and establishing a steady source of livelihood before exiting service.

“My plans are enormous. First, I need to have a property and develop it, which God has helped me to do. I plan to establish a business that can generate daily income for survival. I am also focused on training my remaining child in school before retirement,” he revealed.

He said his son was already passionate about the business, which they plan to establish in two to three years.

“I plan to establish a fashion centre with my son when I retire. We are already making arrangements to put all the necessary machinery and other implements required in place to make it functional.

My son is doing well in the fashion industry. He is still a medical student but combining both. Once the centre is established, I will put him in charge and get tailors employed to make the business thrive,” Giwa said.

He believes that life these days is unpredictable and one must begin to plan for life after retirement.

Another employee working in a private company but craved anonymity said he had N8 million with his pension fund administrators, who informed him that the money could increase to N15 million before his retirement through pension contributions and proceeds from investment of the fund.

The employee said the pension managers explained to him that after his retirement, he would be entitled to a lump sum from the money, with which he could start a business.

On the monthly pension after retirement, he said his fund managers gave him two options: pension for 10 years from his retirement savings, and life pension. He added that the pension for 10 years would be higher than life pension because the money would be drawn from his pension contribution and proceeds from investment of the fund.

“I plan to start a small poultry business with the lump sum payment I will receive, while depending on the monthly pension until the poultry business grows to take care of my bills and daily needs,” he reasoned.

Also speaking on his retirement plans, Mr Obara Abiola, who works in a media organisation, said although the management enrolled workers in a pension scheme, he had been exploring other streams of income ahead of his retirement.

He said, “I am nearing retirement and I have been investing in animal business and that of yam flour in bags from Kaiama in Kwara State.

“However, the major investment is in the children, with the hope that they would take care of the family when the time comes, as African parents. That is why I don’t joke with the education of my children and strive to meet their needs even at my own detriment. I don’t allow them to lack anything in school or have cause to reconsider their quest for education. We also complement that with good home training and hope for the best,” he said.

Mr Lukman Shittu of Al-Hikmah University also said that although the institution enrolled staff in a compulsory pension scheme, he intends to venture into business after retirement.

“Yes, aside from the school’s pension scheme, I am looking at venturing into trading or entrepreneurship, depending on the circumstance when the time comes,” he said.

On his part, Lateef Abdul in Kwara State said he resigned from his former workplace when the company planned to transfer him to Lagos State and since relied on his clientele network and cobbling skills to remain afloat.

“The saving grace for me was that while I was still working, I learnt cobbling; and thankfully, I was very good at it. I used to work for a cement company, and when they wanted to transfer me, it wasn’t conducive because of family issues and other considerations. So, I took the risk of staying back and fell back on my cobbling trade. Later, I leveraged on my clientele who connected me with others; and today, there has been no regret,” he said.

Pension expert speaks

Speaking on the significance of adequate preparation for retirement, a pension expert at the Contributory Pension and Happy Retirement Advocacy (COPEHRA) Mr Sani Mustapha notes that civil servants and private sector workers must prepare in good time as planning matters.

“Adequate retirement plan is critical and it means retiring with a 100 per cent or at least 80 per cent lifestyle that one lived while in active service, as anything less than that will mean punishment.

“Also I believe that all facets of living given to existing workers should be reflected for retirees as well, because those in employment look at retirees as a mirror,” he said

On what government can do to support, he noted that “In Nigeria, federal government is trying with policies that support happy retirement especially with the introduction of free healthcare for retirees under the Contributory Pension Scheme,”

He however, lamented that “A lot of retirees are suffering  in states, as pensioners still receive very low pensions and are not remembered untill they stage protest,”

He called on states to step up, and make welfare of pensioners their priority

Contributions from Promise Adagba (Akure), Adam Umar, Al-Mustapha A. Mustapha (Abuja), Mumini Abdulkareem (Ilorin), Hope Abah (Makurdi), Ahmad Datti (Kano) and Bassey Willie (Yenagoa).

UPDATE NEWS:

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder, click here to find out how it works.