AN ASSESSMENT OF POST-RETIREMENT LIFE AND CHALLENGES FACING PENSION SCHEME IN NIGERIA

Adjustment to retirement is a course of action that starts from the day of disengagement from active work to life end. It is therefore essential to set targets for oneself or find activities that offer a sense of intention and meaning to life after retirement. The strategies used by each retiree may depend on how emotionally, socially and financially prepared he or she is before the event occurs, as well as the type of retirement whether voluntary or forced. For instance, retirees may become more selective of several activities choosing to withdraw from many demanding engagements and retain a few they can adequately manage. Retirees who adjust best are those who do not suffer from financial problems, ill health, stress-filled life, or death of spouses or children. They could have enough to live on, have sufficient social network among offspring’s, friends, relatives or even former co-workers. It is based on problems facing retirees that the Federal Government of Nigeria recently overhauled the institutional framework for pension administration in Nigeria by promulgating the Pension Reform Act 2004. Determined to solve numerous problems of the erstwhile unfunded defined benefits pension system in Nigeria, the Federal Government in June 2004 introduced a contributory pension scheme. The new pension system is to be based on individual retirement savings account managed by private financial institutions. The switch from old to new pension scheme may not be smooth sailing. Thus, the paper assesses post-retirement life and challenges associated with the pension schemes in Nigeria and conclude by offering some recommendations that could enhance the success of the new scheme.