Effects of unemployment to retirement plans to Nigerians

[Deleted member 62875]

Unfortunately, the major reason for the low participation rate in Nigeria is unemployment. You cannot save what you do not have. Generally, pension participation is a function of income and income is dependent on employment. So, it boils down again to the government’s ability to create a conducive environment for job creation, for people to be employed in those jobs and for them to be incentivized enough to save for their retirement.
Looking at Nigeria, there are so many opportunities for the government to create jobs but it does not look like the government sees those opportunities or perhaps, those in power are either selfish or do not know what or how to do it.
With the unemployment rate as high as 35% in Nigeria and employers shamefully engaging in age discrimination in their employment process by requiring that applicants of above certain age limits should not apply for some jobs, it is becoming obvious that retirees may not be adequately taken care of by their children in old age.

As more and more Nigerians come to grips with the fact that gone are the days when retirees depend on their children for meeting their financial needs at retirement, the pension participation rate will likely keep increasing.

 

[funmi]

The topic you just raised is very pathetic and painful. Nigeria is rotting by this issue of unemployment, the rate at which people are struggling in terms of searching for job is very alarming.
For retirees, their hope can be in what they have done and how they have safed money before they retired. If they invest, it can still be better for them since that is what they will fall back to after they retire.
Many youths in our country today do not have hope for their future, how can they even help their old retired parents and family members? Right now, life is strictly per- head. Everybody must plan ahead for himself or herself. Gone are those days, when people used to work hard for their children, hoping that when those children are sent to good schools and they come out with good grades, they will get good jobs that will be paying them well. But right now, reserve is the case, things does not work that way again.
I have seen many graduates who are still staying under their parents roof and are being catered for by this same parents who have spent a lot of money on them while in school.

 

[Kendy]

The rate of unemployment in Nigeria is on the high side. Year in, year out, so many students are graduating with no hopes of getting a job and this is why education is now regarded more as a side hustle and learning a skill or trade is being taken more seriously. The effect of unemployment to retirement plans has made so many individuals face depression and dwindle or develop health problems. The government is doing nothing to salvage the situation as they keep on complaining of being bankrupt yet they focus on trivial matters that is of no priority. Even those who are working in government organizations still find it hard to get access to a good retirement plan. They would even have to clamour and protest for their pension and gratuity before it can be paid in droplets. The effect of unemployment has made many youths stranded and some even engage in bad vices just so they could feed their empty stomachs but this is not good because there is not justifiable reason to dupe someone who is trying to survive in this harsh economy. The frustration should be passed to the government but needless because we only operate democracy on paper but an authoritarian in reality.