PenCom warns young Nigerians, ‘soft life’ today could drain retirement savings

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has urged young Nigerians to begin saving for retirement early, warning that excessive spending on today’s lifestyle could leave them financially vulnerable in old age.

Oloworaran gave the advice on Monday while declaring open the National Pension Week 2026.

She encouraged young people to balance enjoying the rewards of their work with building long-term financial security.

PenCom wants Nigerians to make plans for the future

She cautioned that while there was nothing wrong with enjoying a comfortable lifestyle, young Nigerians needed to make deliberate plans for their future.

• “There is nothing wrong with enjoying the rewards of your hard work. I know young people, they like soft life. Even I like soft life, really. But real financial success is not just what enters your account. It is what you keep, what you build, and what you protect,” she said.
• “So enjoy the soft life like I like to do myself. Just do not let today’s soft life become tomorrow’s hard life.”

To illustrate the benefits of early pension contributions, Oloworaran compared two hypothetical investors, Emeka and Tolu, who begin saving at different ages.

She said Emeka, who contributes N10,000 from age 40 to 60, could retire with about N13 million, while Tolu, who starts contributing at age 20, could accumulate N113 million by retirement.

According to her, the illustration assumes a conservative annual return of 10%, while aggressive pension funds for younger contributors recorded returns above 20% during the period she reviewed.

• “More than eight times as much for less than twice the contribution. Tolu did not earn more. Tolu did not work harder. Tolu simply started earlier. And that is the power of compounding,” she said.

The PenCom chief said the example underscored the importance of allowing investments more time to grow, encouraging young Nigerians to consider retirement planning from the beginning of their working lives.

Time is young Nigerians’ biggest advantage

Oloworaran acknowledged the financial pressures confronting young Nigerians, including unemployment, family responsibilities, education costs and the rising cost of living.

• “I see that and I actually do respect that,” she said.

However, she argued that time remained one of the biggest advantages available to young people when planning for retirement.

• “But here’s the truth. The greatest advantage you have is not how much you earn today. It is time. Time is the one asset every young person with us today already owns. And it is the one asset nobody can give back once it is spent,” she said.

Oloworaran said PenCom was asking young Nigerians to save for retirement while committing to building their trust in the pension system.

She outlined four priorities for the commission: making pensions easier to understand, improving access through digital channels, enforcing high standards of governance and investment management among pension operators, and listening to young contributors.

• “The future of pensions cannot be designed only in offices and bedrooms. It must be shaped by the people it is meant to serve,” she said.

She encouraged participants to use the event’s chat platform to share their expectations of the pension system and indicate when they would want to begin contributing.

• “We are reading and we will respond,” she said.

PenCom urges operators to improve digital access

Addressing pension fund operators, custodians and other industry partners, Oloworaran said younger Nigerians expected faster services, greater transparency and convenient digital access.

• “If a young Nigerian can order food in two clicks, opening a pension account must not take one day to open,” she said.

She added that young people should not have to discover the importance of pensions by chance, arguing that the industry must communicate with them in accessible language from the start of their working lives.

According to her, the long-term success of the pension industry depends on keeping younger contributors engaged and demonstrating how pension savings can protect their financial dignity in retirement.

Oloworaran urged young Nigerians to pursue their ambitions while taking responsibility for their long-term financial wellbeing.

• “Dream boldly, build your skills, create value, and look after your future self. A secure pension is not a reward for growing old. It is the result of what we build while we are still young,” she said.

Pension assets rise to N31.8 trillion

Her call comes as Nigeria’s pension industry continues to expand, with pension fund assets increasing by N3.8 trillion in the first eight months of 2026.

• According to an unaudited report from PenCom, total pension assets rose from N28.04 trillion in January to a record N31.8 trillion as of August 31, 2026, representing year-to-date growth of 13.41%.
• On a month-on-month basis, assets under management increased by N289.4 billion, or 0.92%, from N31.5 trillion recorded in July.

The growth highlights the continued expansion of the Contributory Pension Scheme amid prevailing macroeconomic challenges.