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6 types of pension plans: Deciding which is right for you

Whether you are employed in the private or public sector, or self-employed, there’s a plan tailored for you.



So, you finally decided to open a pension account. Great, but that is only the first step in the process. Since you are reading this, you need to know how you can get started and what plan is the right fit for you.

An informed understanding of the various pension plans will help you make the right decision. Whether you are employed in the private or public sector, or self-employed, there’s a plan tailored for you.

1. Contributory Pension Scheme

The contributory pension scheme works for you whether you’re in the private or public sector. Under this scheme, you’re eligible for a Retirement Savings Account (RSA).

A retirement savings account is a dedicated account that allows monthly contributions from you and your employer. The amount contributed is usually between 15%-20% of your salary.

Your RSA acts like a savings account, except contributions, are made on autopilot. That means you don’t have to worry about deducting the money from your bank account every month. However, the difference between a savings account and an RSA is that your contributions are invested in financial instruments to yield profits, which protects your pension fund from inflation.

Premium Pension has an excellent record in delivering value on pension funds. Trusted by over 700,000 members, they put in the work to make sure all their members are well prepared for their golden years.

2. Voluntary Contribution Scheme

The voluntary contribution is an additional contribution plan and it is optional. You can use this opt-in for this scheme in addition to having a contributory pension scheme.

With this, you can make more contributions to your pension fund. This scheme is also more flexible. Unlike the RSA, your contribution can be made monthly, quarterly, biannually, or even weekly.

Your employer would need to be notified if you choose to opt-in for this option.

3. The Micro Pension Scheme

In 2014, the micro pension scheme was introduced to make provision for self-employed individuals.

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This plan allows for more flexibility for entrepreneurs, traders, professionals, and other self-employed persons that don’t qualify for the contributory pension scheme.


If you’re self-employed, this is the plan you should opt-in for.

4. Cross-Border Pension Scheme

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So far, we have highlighted pension plans for people who live in the country. But what happens if you are outside the country?

If you live outside the country, you are not left out.

The cross-border pension scheme enables Nigerians who are employed outside the country to make contributions to the pension fund. Your Retirement Savings Account will be denominated in Naira as well.

5. Retirement Plan

This plan still falls under the contributory scheme and is meant for retirees.

As a retiree, you are not high-risk tolerant. Therefore, your pension fund will be invested in financial instruments that are low-risk, mainly fixed income instruments such as corporate or government bonds.

Premium Pension managers are experts at risk management, ensuring that your fund is secured until retirement.


You can apply for a programmed withdrawal plan, enabling you to receive your pension periodically either monthly or quarterly. A second choice is that you can make a withdrawal in a lump sum if your total pension fund is below N500,000.

However, you can only access this plan if you are 50 years and above.

6. Institutional Pension Fund Management

This product is available to cooperate bodies, MDAs and State Governments to manage. This isn’t an individual plan as it is tailored to suit corporate institutions instead.

Your golden years are a special time in your life. It’s important that you make the informed decisions about your retirement plan so you can live out those years to the fullest.

The Pension Fund Administrator (PFA) you choose also goes a long way to ensure that your financial needs are met during retirement. That’s why you cannot afford to make the wrong choice when choosing a PFA. You should read this short guide on how to choose the right PFA.

With this, you can decide what plan is best suited for you. Click to make the Switch to Premium Pension for optimum returns, timely benefits payment and exceptional customer service in offices across the 36 states of Nigeria and the FCT.

You can also visit to find out more or simply call 09- 461-5700-4.

NM Partners represent articles published in paid partnerships with corporate organisations. They include press releases, targeted content, and other forms of corporate communications on behalf of our Paid Partners.

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Kimpton Kawana Bay and the $17m opportunity for African investors

Enter the need for a second passport and visa-free travel through Citizenship By Investment Programmes.



At a time when African investors are pursuing global opportunities to improve their bottom lines and deliver greater value to their shareholders, their intentions are increasingly frustrated by the limited access of the Nigerian passport in regard to global travel.

Among other West-African passports, the Nigerian passport is restricted in its reach to only 54 visa-free destinations, many of whom are other African countries like Ethiopia. This modest number falls short next to that of Ghana, Cameroon and even Côte d’Ivoire, who have visa-free access to 73, 61 and 67 destinations respectively.

But it gets worse– when the Nigerian passport’s visa-free listings are viewed through the lens of La Vida’s Passport Value Report which combines metrics of GDP and international travel popularity to ascertain the true value of each country’s passport, it makes for even grimmer viewing as the access value is only a meagre 2.1% of the world’s GDP and 3.1% of the world’s international travel popularity.

For Africa’s most populous country preparing itself for a future without oil by leading the continental charge to export technology and talent globally, these numbers are simply unacceptable.

Global Opportunities lie in wait, yet remain gated by visa-restrictions.

One instance of the myriad opportunities that exist beyond the continent for Nigerian business executives and buttresses the need for global travel is remittance. According to global Audit Firm, PWC, there are an estimated 15 million Nigerians living in the diaspora whose remittance is projected to hit $34.8bn in 2023 with 40% of these remittances coming from 5 European countries alone.

This presents one of the greatest opportunities to set up banking and technology infrastructure across the EU to help more Nigerians and Africans send money back home, which even at a modest 0.1% margin could add around $17m in revenue to their bottom line.

To achieve this, however, executives would need to jet in and out of Europe to set up, conduct business and oversee operations. But the limitations of the Nigerian passport mean they will require visa approvals to travel, which may not only delay the speed of execution but also bring with it the possibility of their requests being outrightly denied.

Enter the need for a second passport and visa-free travel through Citizenship By Investment Programmes.

The Case For A Powerful Second Passport

As African countries grapple with insecurity, inflation and currency devaluation, the need for second citizenships have never been more apparent, especially as a ‘Plan B’ to hedge against whatever may come. And as the continent’s affluent middle class are becoming wealthier, their needs are evolving, from global business mobility, better visa-free travel to high-quality education opportunities abroad for their children.

It is at this juncture that the opportunity offered by La Vida Golden Visas to acquire Grenadian citizenship through investment in the soon-to-be-completed Kimpton Kawana Bay Resort serves to transcend this existing gap and provide the much-needed hedge African HNWIs and executives need to expand and safeguard their earnings, businesses and families.

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The Grenadian Passport is an instant value-add for Africans


Upon acquiring Grenada’s lifetime citizenship, the combined value for the Nigerian passport grows to 58.7% of the world’s GDP; with the Grenadian passport granting visa-free access to over 163 countries and territories including the UK, EU Schengen zone and uniquely China and Russia. At once, African HNWIs and leading execs gain unrestricted access to the countries at the forefront of global development.

“Grenada’s Citizenship by Investment (CBI) programme offers several added attractions that many of its competitor countries do not”, says Chief Executive Officer of La Vida Golden Visas, Paul Williams, in a recent interview. “The application takes only 60-90 days, has low family fees, and no interview, education, language test or management experience is required. There is no residency requirement and dual citizenship is permitted as well. Grenada also does not tax worldwide income, wealth, gift, inheritance or capital gains- which make it more attractive to business elites”.

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Obtaining Grenadian Citizenship: Kimpton Kawana Bay Resort CBI

Grenadian citizenship can be obtained by investing in Government-approved real estate at a minimum of $220,000, as is the case with title deeded studios in the island’s prime project—Kimpton Kawana Bay Resort, the new beachfront 5-star luxury resort currently under construction in Grenada by True Blue Developments—a company with an impressive 20-year record in development.

“The resort, which is 79% sold out, is ideally positioned on Grand Anse Beach, voted by CNN and Condé Nast Traveller as one of the world’s best beaches. The hotel will feature an infinity-edge pool overlooking the turquoise Caribbean Sea, state-of-the-art gym and spa facilities, exquisite fine dining restaurant, roof-top bar, beach bar, lounge with terrace, and water sports facilities,” says Tom Scott, Managing Director of Kimpton Kawana Bay.

The resort, heralded by Forbes as one of the most anticipated luxury openings in the world is set to open in 2022 and will come under the operation of the internationally recognised hotel brand—Kimpton Hotels & Restaurants, part of the InterContinental Hotels Group, one of the largest in the world.

The nature of the real estate investment also allows for personal accommodation usage for up to 2 weeks, while generating a projected rental income of 3-5% through the transparent revenue-sharing model. The investment also provides the option of recouping the initial investment after 5 years without effect to the acquired Grenadian citizenship.


In further providing global access, an investment in Kimpton Kawana Bay Resort would grant citizens access to live in the UK for up to six months every year, as Grenada forms a part of the commonwealth. Another peculiarity is the E-2 Visa option, which is a secondary application open to Grenadian citizens who want to live and work in the US.

Africa’s Battle-Ready Investors are finally unleashed

At a time when African investors have their sights firmly trained on the opportunities existing beyond the borders of the continent in search of growth and starring roles in shaping the present and future of global business, technology, medicine and so on, Kimpton Kawana Bay is finely positioned as the bridge between hopeful thought and ground-breaking reality.

For once, African investors are finally equipped for expansion and global domination. The rest of the world better take notice.

To get started, contact La Vida Golden Visas for more information and counselling.

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From worry to ease: How FundBae is helping young Nigerians meet their money goals

FundBae strives to make money management, both practical and emotionally fulfilling.



In Nigeria today, data show that individuals have a high propensity to consume but a low tendency to save. High consumption simply means low savings and investments, which might be a function of the country’s economy typified by low incomes or poor salaries but could also be a reflection of a culture that doesn’t save or invest. Yet, low income should not be a reason not to save because savings and investments have the capacity to increase the quality of life, reduce risk and increase financial security.

In this context, FundBae simply provides savings and wealth management services targeted to the mass affluent and millennials via a well-designed, intuitive app. FundBae offers an easy-to-use application that offers flexible saving and higher interest rates on their savings offering up to 15% interest per annum relative to a traditional bank account.

Launched in November 2020, the money app has recorded over 7,500 users with over N200 million in transaction value. Users can simultaneously save, invest, and access loans at the most competitive interest rates.

The app empowers the users to maximize their happiness by saving, spending, and investing with their goals in mind.

Users have control over how much they save and earn depending on plans they opt for; a user can save and get interest paid every day that is easily accessible anytime. A user does not necessarily need to wait till maturity before accessing both interest and capital.

In a report released by the National Bureau of Statistics (NBS) titled “2019 Poverty and Inequality in Nigeria”, it states that 40 percent of Nigeria’s population, or almost 83 million people live below the country’s poverty line of 137,430 Naira ($381. 75) per year. It means that lots of Nigerians live below the poverty line not just because they have low incomes or poor salaries, but perhaps the inability to imbibe a savings and investment culture.

Co-Founder, Sola Adeyinka, CFA stated that FundBae was born out of a passion for helping individuals achieve their financial goals, efficiently and seamlessly. In his words, “We started FundBae, which is a holistic and integrated goal-based experience that serves the financial life of our customers over the short, medium, and long term. We understand the struggles our customers face, and for this reason that is why the FundBae experience empowers our customers with services, resources to help them find fulfilment and happiness with their finances. FundBae is about more than just taking charge of your money – it’s your plan for money happiness and financial goals”.

How Does FundBae Work?

Flexibility is a critical factor for FundBae. That is why the platforms allow the users to explore and choose from the available plans. The company has developed Android and iOS versions making it easily accessible for any user on any device usage. An individual can subscribe to any of the following plans:

  • FlexBae – a flexible savings account where a user earns interest on loose funds in as little as 24 hours, interests are paid daily, which is accessible freely within a specific duration. In this plan, users can access their interest from 8 am-4 pm on working days. The interest rate on the FlexBae plan is up to 12% per annum.
  • VaultLite – this plan enables a user to save consistently towards a particular financial goal. The interest rate for a user Vault account is up to 10% per annum.
  • VaultPlus – a fixed savings option that allows you to earn higher interest per annum. A user can decide to save for 3- 6 months or 2 years. The interest rate on your vault plus is up to 15% per annum. Interests are paid upfront.
  • Save2B – this is a savings plan where a user earns a high-interest rate and qualify for a loan of up to 200% of your savings after consistent savings for six months.

Looking Forward

FundBae strives to make money management, both practical and emotionally fulfilling. The challenge for many individuals is to break up their budgets into weekly allocations and develop a plan within their means and leave them feeling their needs are met. The FundBae founders are more focused on building a customer-centric product where users experience a modern banking experience based on goal setting and saving effortless, motivating, and even a little fun.

The Chief Operating Officer, Femi Darabidan, stated that “FundBae focuses on users to do more of what helps them master their money. “We will help achieve their goals by creating more personalized tools and experiences on the app for individual financial growth.”

The founders also stated that their target is to grow financial literacy for middle-class individuals and the millennials. To them, this will play a significant role in helping the users make reliable financial decisions. “We will create lots of avenues that will increase the financial literacy of our existing customers. We believe an individual can do their best to prepare for the future by getting their finances in order, no matter how much or how little they make.” Femi stated.

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Money is personal, so FundBae is too. What are your goals? FundBae will help you save for near-term goals and invest for those further in the future also saving for all the wonderful things you want to experience.


For more details about FundBae, visit

FundBae is also available on Play store and App Store, and on all social media @fundbaeng

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