Rising inflation is eroding the value of pension savings in Nigeria, raising concerns about retirees’ financial security. 

Analysts warn that without strategic financial planning, many pensioners may struggle to maintain their standard of living post-retirement.

Chartered insurer and financial expert Adetola Adegbayi highlights the alarming impact of inflation.

 With a benchmark rate of 32.5%, a monthly pension of N150,000 in 2023 is now worth only N91,000 in real terms by 2025. To match the same purchasing power, retirees would need about N248,000 per month today.

 Likewise, a N50 million pension savings in 2023 has depreciated to an effective value of N30.2 million in 2025, representing a 39% loss.

This decline underscores the urgent need for Nigerians to reassess their retirement plans.

 Financial experts advise that pension contributors must distinguish between mere savings and strategic investments that can outpace inflation. 

Adegbayi urges workers to seek trusted financial advice and explore options like pension-linked insurance, inflation-indexed bonds, and diversified investment portfolios to safeguard their future.

With economic volatility becoming the norm, a proactive approach to retirement planning is essential. Experts emphasize that securing financial stability in retirement requires more than just pension contributions—it demands informed, strategic decision-making to counter inflation’s impact.