Benefits of Contributory Pension

To contribute a pension means that both the employer and the employee have a fixed amount of money that must be paid into an account to save up for the employee. This amount of money would be given to the employee the moment he or she officially leaves the organisation.

Andre Piacquadio

The Contributory pension scheme is the best ever. Recently, a colleague of mine who got a better paying job in the eastern part of the country called in to say that she has received her pension fund from our employer, her former employer.
She got a whooping $2,000. That's a huge amount when converted into local currency.
When the scheme started about ten years ago, we were having our end of year dinner party and the manager of the company tapped on the bell to arrest our attention. Then, he announced that in the following year, all staff will be made to join the pension scheme. It will be a contributory pension.
At first, we thought it would not work out because the contribution was going to be saved and managed by the company and not by any insurance of the pension fund administrator.
It has been ten years and every member of staff who had resigned due to some reason or the other, have been paid.
The purpose of the post is to show you the benefits of engaging in pension.

Benefit of Contributory Pension.

Productivity: Knowing that the future is protected, an employee would ensure that all the primary functions in his or her duty post are handled, efficiently too. Employees tend to work very well when they know that the organisation has a good plan for them. More so if the plan is financial.

Life After Retirement: In Nigeria for instance, an employee is forced out of work when he turns sixty years old. That's the retirement age. What happens after one is asked to leave the office? That is why pension is important. The retiree would have something to fall back to. That is the essence of pension in the first place.

Tax Relief: As long as someone would not support tax.evasion, since it is culpable, the government can only generate income. So, when money is contributed, the government does not tax it. Hence, it is a way of reducing the amount of tax that is paid on your income.

In all, there comes a time in the lifetime of a man that he will not be able to work again due to his age. Hence when a pension have been saved up, the old man or woman would have something to fall back on. The essence of pension in a nutshell is to ensure that there is hope when one is out of job or too old to work.