PenCom urges young Nigerians to start pension savings early, illustrates ₦100M compound gain
PenCom director-general Omolola Oloworaran urged young Nigerians to begin retirement savings during their productive years, not when retirement approaches, at the 2026 National Pension Week youth engagement on Monday. She illustrated the power of compound returns: two workers saving ₦10,000 monthly at 15% annual return—Tolu starting at 20 accumulates ~₦113 million by 60, while Emeka starting at 40 reaches only ~₦13 million despite identical contributions.
The commission is adapting the pension system for today's work reality—entrepreneurship, freelancing, tech, and self-employment—through the Personal Pension Plan. "We will not ask you to fit into an old system. We will build a system that fits the work that you do," Oloworaran said. Nigerians no longer need formal employment to save; artisans, farmers, content creators, and gig workers can contribute based on their circumstances.
Under the contributory scheme, employers contribute 10% and employees 8% of monthly emoluments (18% total), invested across money-market instruments, treasury bills, bonds, and alternative assets. PenCom pledges digital-first access: "If a young Nigerian can order food in two clicks, opening a pension account must not take one day."
Financial literacy advocates stress early savings culture regardless of income. NASD's Arese Ugwu recommends a 70/20/10 budget split (living expenses/long-term goals/emergency savings), while lawyer Timi Agbaje argues pension messaging should sell "independence, freedom, and choices" to resonate with youth facing high rents and career uncertainty.
Will you start a Personal Pension Plan this month, or wait until higher earnings make it "easier"—knowing each decade of delay costs millions in compound growth?