Why retirees should take annuity
The General Manager, Life Business, Leadway Assurance Company Limited, Mr. Tinashe Muyambo, urged retirees under the Contributory Pension Scheme (Programmed Withdrawal) to take annuity at their retirement because it will provide them with pensions for life. Insurance Guru will further advise you on why you should consider annuity.
WHAT IS AN ANNUITY?: An annuity is an income purchased from an approved life insurance company which provides monthly or quarterly income to the retiree throughout his/her lifetime.
He said this during a forum, which was organised by the firm for its retirees in Lagos.
“We remain committed to the initial commitment we gave to our annuitants from the time they joined us that we would be there for them for life by ensuring their regular pensions,” he said.
He said the company liked to hold the event for its retirees every year to create a platform to assist them with their challenges through pension advice; free medical checks and entertainments.
“We had held previous events of this kind before and we intend to continue holding more,” Muyambo said.
According to him, the company provides annuity payment to about 20,000 retirees on a monthly basis while Custodian Life Assurance does the same .
One of the firm’s retirees at the event, Mrs. Supo Adeola, said she chose annuity because of the hope of long life and continuous payment of her pensions.
“I joined Leadway at the end of my retirement last year and I am really impressed because they pay promptly just at the 12th of the month, and they will still be sending messages to us,” she said.