Contributory Scheme Designed To Ensure Long-term Retirement Security, Say Pension Operators

Pension operators under the auspices of the Pension Fund Operators Association of Nigeria (PenOp) said the contributory pension scheme (CPS) was designed to ensure long-term security in retirement, as opposed to the old pension scheme.

In a document made available to LEADERSHIP, the operators noted that “for Nigerian workers, CPS is the system designed to ensure that this promise is kept. Yet, as public debates grow louder, it is important to separate emotion from fact and quick fixes from sustainable solutions.

“At the heart of the pension conversation lies a simple question: should retirees be allowed to withdraw their savings in full, or should access remain structured? The former offers instant gratification; the latter seeks to protect long-term security. The choice is not trivial—it determines whether our elders live their final years in comfort or in poverty.”

Citing an instance of a retiree with N20 million saved up over a career, he said, “it may seem logical to withdraw the entire sum and invest it independently.

Some might argue that higher returns can be secured by chasing attractive interest rates or putting the money into a family business. But this perspective often