The Nigeria Labour Congress (NLC) has demanded that the lump sum payment on retirement under the Contributory Pension Scheme (CPS) be increased to 50 percent.
This request according to NLC president, Joe Ajaero will help retirees start their retirement comfortably.
Ajaero who spoke at an event in Abuja on Monday said retiring workers often worry about whether their pensions will be paid promptly, if they will have enough money to live on, and whether their pensions will keep up with inflation and cover basic needs like housing and healthcare.
The Labour chief pointed out that many retirees face inadequate pension benefits, with inflation eroding the value of their fixed incomes.
For instance, savings in a Retirement Savings Account (RSA) worth N10 million before 2023 have dropped to around N3 million in real terms.
He also highlighted issues such as delayed pension payments, inconsistent policy implementation, and the lack of support for informal economy workers.
Ajaero called for reforms to ensure timely and adequate pension payments, greater transparency to reduce mismanagement, and policies to adjust pensions for inflation and living costs.
Additionally, he emphasized the need for better social support systems, financial literacy programs for retirees, and the inclusion of informal sector workers in the pension framework.
He also suggested expanding investment options for workers’ RSAs beyond housing to allow for more diverse investments while in service.
