Financial expert and Managing Director of Sigma Pensions Limited, Dave Uduanu has stated that savings and pension funds are critical to development, urging government to introduce right incentives that will enhance mobilisation of savings and encourage more people to save.
Speaking at a virtual media engagement organised by the Junior Achievement Nigeria (JAN) where they deliberated on ‘Impact of Financial Literacy on Youths’, he noted that short and long-term savings have spurred development in many countries around the world.
JAN is part of Junior Achievement Worldwide, the world’s oldest and largest non-profit economic education organization operating in 120 countries.
Uduanu, a board member of JAN, explained that the level of savings in an economy has a multiplier effect on its investment, adding that long-term savings will spur activities in every sector of the economy and accelerate growth.
According to him, there is need to imbibe appropriate saving culture from youthful age, especially in the university level, noting that this will go a long way to moderate their spending habits as they grow into adulthood.
He pointed out that if there were no savings, there would be no investment. He urged Nigerian workers to embrace the culture of savings in order to provide more viable exit plans, especially in the face of voluntary or compulsory disengagement
He said:“ Savings and pensions critical to national development. Pensions are the bedrock of the long term financial savings. The longer you save, the better for you and it is important to start save for the future while we are still young.
“That is why at Sigma Pensions, we target university students and youth corps members for our catch them young programme. People should save learn how to save enough money now so that when they retire, they can continue their lifestyle in retirement.
“The minimum requirement for pension is 18 per cent of income from the age of 25 while in other climes; some do as high as 30 per cent but the most important is to start a pension savings plan now”
He added that it is difficult for people that already built a strong pension plan to be involved in financial crime or embezzlement because the person is assured of a better future.