Annuitants under the Retirement Life Annuity (RLA) plan with African Alliance Insurance Plc have faced significant hardship as they have not received their pension benefits since May 2024, a delay that has stretched for over four months. The situation has created financial challenges for many retirees, particularly as the Nigerian economy faces increasing pressure.
One of the affected retirees, Gbadebo Olatokunbo, expressed frustration over the delay, emphasizing the financial strain it has placed on senior citizens who depend on these payments for survival. Olatokunbo called on the National Insurance Commission (NAICOM) to step in and demonstrate regulatory leadership to ensure that these retirees, many of whom are elderly, are not subjected to continued hardship.
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“Life has been difficult for us, especially in these trying economic times,” Olatokunbo said. He also noted that the situation has not improved despite a previous directive from NAICOM to address the issue.
The delay has also raised concerns about the broader Contributory Pension Scheme (CPS), with Olatokunbo calling on the government to intervene and ensure that the goals of the CPS are not undermined by insurance companies failing to meet their obligations.
Reports indicate that NAICOM has been monitoring African Alliance Insurance Plc and working to resolve the issue, though no resolution has yet been announced.
This situation has renewed calls for retirees to diversify their retirement strategies by combining the Retirement Life Annuity with other options such as programmed withdrawals. Financial experts also recommend adopting personal saving strategies like deferred annuities or endowments to provide additional financial security during retirement.
Olatokunbo also advised that retirees consider deploying their pension lump sums into retirement life annuities, while using their retirement savings account balances for programmed withdrawals, to reduce their risk of financial instability during retirement.
The delay in payments by African Alliance Insurance Plc has shone a light on the importance of financial planning and the need for regulatory bodies to protect retirees from such disruptions.
Source: Inspensionline
