Abstract

The surest way most old people who have retired from active service solve their financial and other problems in Nigeria is mostly through their pension packets. It is however sadly observed that these monies are usually unreachable to them as at when due because of the manner in which government and other employers handle pension issues. Because of this, some persons who are due for retirement manipulate and lower age records to prolong retirement date and remain in service even when they are no longer productive thereby constituting wastages in the economic system. Thus, the need to provide adequate and effective financial security for old age in Nigeria has become extremely necessary. The systems for providing financial security for old age in Nigeria have been stressful, strenuous, and uncertain. Currently the Retirement Savings Account (RSA) under the Pension Reform Act (PRA) 2004 is adopted. This paper therefore examined the PRA 2004 and its significance on retirement planning in Nigeria. It investigated the current status of the PRA 2004 in attaining the objectives for which it was promulgated as perceived by 3,000 serving teachers and teacher pensioners. Results revealed that the objectives were yet to be achieved since retired persons still suffered trauma, pains, and even death before they received their pension packages in Nigeria while its sustainability was questioned.

Key words: Pension, retirement, financial security, planning.