IBTCPensionBossHighlightsMeritsofMultifund Structure
The Chief Executive Officer of IBTC Pension Managers, Mr. Eric Fajemisin has highlighted the merits of the newly introduced multi-fund structure of investment in the pension industry.
According to Fajemisin, the new scheme is better than the previous “one-size-fitsall” investment structure arrangement that puts all active contributors into one Retirement Savings Account (RSA) Fund for purposes of investment.
Fejemisin, stated this at a pre-retirement seminar organised by the company in Lagos recently
He said the new pension fund investment structure which categorises contributors and their fund investment pattern according to their age would resolve the challenge of asset-liability risk management faced by the operators.
“By aligning the age and risk profile of RSA holders to match the four funds under the scheme, contributors would have a better chance to earn improved returns on their investments in proportion to their risk appetites,” the Stanbic IBTC pension boss said.
According to him, the different categories of the multi-funds structure are Fund 1, Fund 2, Fund 3 and Fund 4.
He explained that Fund I is targeted at people of 49 years and below who in the quest for higher returns are willing to take more risks. Also, Fund 2 is targeted at people who are aged 49 years and below and still working but are satisfied with moderate returns and levels of risks.
In addition, Fund 3 targets people 50 years and above but still working and have very low risk appetite, while Fund 4 is for retirees who have the lowest risk profile of all categories.
Fajemisin, said even though an individual may be retired, his/her money should continue to work for him.
Planning for retirement, he said, should commence from the first day an individual starts working. This, he noted may seem disheartening at the onset, but with the help of an experienced pension professional, the process is made easy in that as retirement approaches, the individual will not encounter the usual apprehension associated with retirement from work
“As people head towards retirement, a decision about the type of life they wish to live in retirement should not be made from the hip, but rather through a wellstructured financial planning process.”
The Stanbic IBTC helmsman outlined three crucial considerations which everyone must give a thought to for a secured future.
He said the first is “that since no one will care more about another individual’s retirement investments, the individual should educate himself about the process. The second thought is that when making retirement investments, the assistance of a professional should be sought. The third thought is even when the individual may have stopped working for money; the money should never stop working hard for him.”