Monday, 14 November 2016

Pension scheme on the way for the 'Self employed'

The Federal Government are coming up with plans to make the self employed pensionable.
The impending PLANS are afoot to extend the pension scheme beyond the formal public and private sectors.

They plan to organise a micro pension scheme for thousands of artisans, self-employed accountants and lawyers amongst  others.
 The Nation gathered from the National Bureau of Statistics (NBS) that the proposed scheme underscores the government’s conviction that the informal sector remains a critical part of the economy.

They noted that every creative idea must have its hitches hence putting some of the challenges they might encounter  into consideration and finding ways to deal with such challenges.
“The possible challenges from the scheme however are socio-cultural inclinations, documentation challenges, low level of financial literacy, lack of confidence in government, irregular income inflow, low level of ICT literacy, associated transaction costs and low level of education.

Benefits, prospects and expectation
Some of the benefits stated were that the scheme will enable contributors access regular stream of retirement benefits at old age; improve living standards of the elderly; benefit from the various incentives offered by PFAs; deepen financial literacy and secure financial autonomy and independence.

Also as a  passage of wealth to survivors in the event of death; increase in national savings and long term funds; promotion of capital growth and development and access to mortgage and insurance markets.


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