Access ARM Pensions has launched a comprehensive awareness campaign to educate the public on the advantages of Additional Voluntary Contributions (AVCs) as a powerful tool for achieving financial security in retirement. This initiative underscores the growing importance of retirement planning in the face of economic uncertainties and the need for individuals to take proactive steps to secure their financial future. The campaign aims to empower individuals with the knowledge and resources necessary to make informed decisions about their retirement savings and leverage the benefits of AVCs. This proactive approach to retirement planning aligns with the broader trend of increasing financial literacy and the recognition that a comfortable retirement requires diligent planning and active participation.
The centerpiece of this awareness campaign is a virtual webinar titled “Boost Your Retirement: Making the Most of Additional Voluntary Contributions.” This interactive platform provides a forum for experts to share insights and guidance on maximizing the benefits of AVCs. Participants gain a deeper understanding of how AVCs can supplement their mandatory pension contributions, helping to bridge the income gap that often arises during retirement. The webinar emphasizes that retirement should not equate to a decline in living standards, but rather represent a continuation of a comfortable lifestyle, a goal achievable through strategic utilization of AVCs. It reinforces the message that proactive planning and consistent contributions to AVCs are essential for securing a financially sound retirement.
During the webinar, Olushola Adekunle, Head of Customer Experience at Access ARM Pensions, emphasized the crucial role of AVCs in supplementing statutory pension savings, thereby mitigating the financial challenges that often accompany retirement. Adekunle highlighted the importance of individuals taking proactive steps to secure their financial well-being during their working years, as relying solely on statutory pensions may not be sufficient to maintain their accustomed lifestyle. He stressed that AVCs empower individuals to take control of their retirement planning and create a financial cushion to navigate the uncertainties of the future. This proactive approach to retirement planning allows individuals to shape their financial destiny and enjoy a more secure and fulfilling retirement.
Ayodeji Ayo-Majaro, Head of Benefit Administration, provided a comprehensive overview of recent reforms by the National Pension Commission that have enhanced the attractiveness of AVCs. He highlighted the introduction of a one-year retention rule, which permits contributors to withdraw up to 50% of their AVCs after one year, providing increased liquidity and flexibility. Furthermore, contributors who maintain their AVCs for a minimum of five years benefit from tax exemptions on both the principal amount and the accumulated returns, incentivizing long-term savings and maximizing the potential for growth. These reforms demonstrate a commitment to making AVCs a more accessible and rewarding retirement savings option.
Ayo-Majaro underscored the importance of retirement planning as a means of preserving one’s quality of life. He emphasized that AVCs offer workers the flexibility to accumulate additional savings during their active years, mitigating the risk of financial hardship in retirement. The attractive features of the AVC scheme, including tax benefits and partial withdrawal options, empower contributors to align their pension savings with their individual financial goals. Ayo-Majaro emphasized the inclusivity of AVCs, noting their suitability for various employment categories, including salaried employees, self-employed individuals, and contract workers. He positioned AVCs as a pathway to a dignified and peaceful retirement, accessible to a broad spectrum of individuals.
Beyond focusing on those in formal employment, Access ARM Pensions also highlighted the Micro Pension Plan, a program specifically designed for small businesses and the self-employed. This initiative extends the benefits of retirement savings to artisans, traders, and entrepreneurs, allowing them to contribute in a flexible manner tailored to their often-irregular income patterns. The company’s commitment to inclusive retirement planning acknowledges the diverse economic landscape and ensures that individuals from all sectors can benefit from the opportunity to secure their financial future. The interactive nature of the webinar facilitated a robust exchange between participants and experts, allowing for personalized guidance and clarification on key aspects of AVCs. The positive feedback received from participants reflects Access ARM Pensions’ dedication to client engagement and their commitment to providing accessible and informative resources on retirement planning. The webinar served as a valuable platform for empowering individuals to make informed decisions about their financial future.
