Access ARM Pensions Pushes Awareness On Voluntary Contributions As Key To Retirement Security – Independent Newspaper Nigeria

Access ARM Pensions has intensified its drive to educate Nigerians on the benefits of Additional Voluntary Contributions (AVCs), urging workers, entrepreneurs, and self-employed individuals to embrace the scheme as a reliable way to safeguard their financial future in retirement.

The renewed push came during a recent virtual webinar titled “Boost Your Retirement: Making the Most of Additional Voluntary Contributions,” where experts from the pension fund administrator outlined how AVCs can serve as a lifeline in retirement by bridging income gaps and cushioning unforeseen economic shocks.

Addressing participants, the firm’s Head of Customer Experience, Olushola Adekunle, said that AVCs offer contributors a unique opportunity to supplement their mandatory pension savings, which often fall short of sustaining retirees’ needs. He explained that while the statutory pension provides a base, it may not be sufficient to maintain the lifestyle workers are accustomed to during their active years.

“Retirement does not have to mean a sharp drop in your quality of life,” Adekunle noted. “With AVCs, individuals can secure an income that allows them to live in retirement as comfortably as they did while working. What your salary could not do for you while in active service, your pension will not magically fix in retirement, but you can change the outcome by choosing to make AVCs today.”

The call for stronger retirement planning comes against the backdrop of rising living costs and uncertainties in the economy, which have made financial stability in old age a pressing concern. For many Nigerian workers, the transition from active service to retirement is often marked by a significant fall in disposable income, underscoring the need for deliberate savings strategies.

Highlighting regulatory reforms that have made AVCs more attractive, the firm’s Head of Benefit Administration, Ayodeji Ayo-Majaro, pointed to initiatives by the National Pension Commission (PenCom), including the provision of a one-year retention rule that allows contributors to access up to 50 per cent of their AVC contributions after one year of saving. He further stressed that those who allow their AVCs to remain untouched for at least five years can enjoy tax exemptions on both the principal contributions and the returns accrued.

According to Ayo-Majaro, these features are designed to make retirement planning more flexible and rewarding. “Retirement planning is not just about putting money aside; it is about preserving your quality of life. AVCs give workers the flexibility to build extra savings during their active years, so retirement does not come with financial shock. The scheme’s attractive features, such as reducing your tax liabilities and allowing partial withdrawals, make it easier for contributors to align pension savings with personal goals. Whether you are a salary earner, self-employed, or a contract worker, AVCs provide a pathway to retire with dignity and peace of mind.”

The discussion also drew attention to the broader pension industry’s efforts to deepen coverage among Nigerians outside the formal workforce. Access ARM Pensions underscored the importance of the Micro Pension Plan, which allows traders, artisans, and entrepreneurs to save for retirement in a manner that reflects the irregular nature of their incomes. By targeting small business owners and informal workers, the plan expands the net of financial security to segments that were traditionally excluded from structured retirement savings.

Participants in the webinar commended Access ARM Pensions for the clarity of its presentations and the relevance of the issues discussed, noting that the session provided practical insights on how individuals can take control of their retirement journey. The interactive nature of the event also underscored the company’s commitment to customer engagement, ensuring that clients are not only informed but also empowered to make decisions that impact their long-term financial wellbeing.

The renewed focus on voluntary contributions reflects growing recognition that retirement security cannot be left to statutory savings alone. With inflationary pressures eroding purchasing power and life expectancy gradually rising, the need for sustainable financial planning has become more urgent. By highlighting the benefits of AVCs and reforms that enhance their attractiveness, Access ARM Pensions is positioning itself as a key advocate for improved retirement outcomes in Nigeria.

As economic uncertainties continue to shape the financial realities of households, the message from Access ARM Pensions is clear: those who plan ahead with AVCs stand a better chance of enjoying retirement without the burden of financial stress. The campaign is not just about numbers, but about preserving dignity, independence, and quality of life long after the years of active service have ended.