Abstract
Employees are faced with unpredictable retirement life, and therefore dream of guaranteed income inflow during retirement. Acquisition of shares and buildings for commercial purposes seems to be the easy antidote to this challenge, until the introduction of the Contributory Pension Scheme in 2004 by the Nigerian government. The scheme legally guarantees 50% lump payment upon retirement and the spreading of the payment of the remaining 50% of the total retirement benefit on regular basis throughout the life span of the retiree. The latter 50% could be used to buy savings account or annuity contract. However, most retirees are faced with the problem of irregularly paid incomes, which usually are very low. This paper x-rays the expected impact of micro insurance scheme on providing retirement benefits to the rural dwellers. It was found that Micro Insurance Scheme will help to provide retirement benefits through collection and invest of savings made payable to the rural dwellers on retirement. Therefore, it was concluded that micro insurance scheme is the preferred way of providing pension benefits to the rural dwellers upon retirement. Hence, we recommend that Nigerian governments should encourage micro insurance pension for rural dwellers, mostly the artisans, through effective enlightenment measures.
Highlights
Pension scheme in Nigeria is one of the things inherited form the colonialists, so is as old as the nation’s history
The sole aim is for the workers to give their full concentration and their very best within the useful age their employments. This type of benefits was originally only for those who are working in public and civil service. It was a guarantee against old age for public servants, as against the experience of private sector employees and rural dwellers whose old age was guaranteed with serious uncertain future and poverty unto death
Some of the roles are: 1) It will help to cater for old age: It will encourage the rural dwellers to make provision for retirement from service thereby making them to plan for their old age, just the way the formal pension scheme benefits employees (Mmbor, 2003; Zupan, 2003)
Summary
Pension scheme in Nigeria is one of the things inherited form the colonialists, so is as old as the nation’s history. The sole aim is for the workers (potential retirees or pensioners) to give their full concentration and their very best within the useful age their employments This type of benefits was originally only for those who are working in public and civil service. It was a guarantee against old age for public servants, as against the experience of private sector employees and rural dwellers (mostly farmers, fishermen and artisans) whose old age was guaranteed with serious uncertain future and poverty unto death. Of this latter group of income-earners, the retirement life experience of rural dwellers appears more bleak and worrisome. This work tries to know the possibility of operating micro insurance scheme and its expected impact on the rural dwellers and other low income earners
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