Will bond be available to the Millennial in Nigeria? – Odunze Reginald C

Who are the Millennial, according to Millennial Legacy,  “Millennial are the generation born between 1982 and sometime in the early 2000’s. However, these boundaries aren’t set in stone. Some definitions have the Millennial Generation starting as early as 1978 and starting as late as 1985. Basically, if you born a little earlier than 1982 and you consider yourself to be more Millennial than Generation X, that is your opinion. Or if you were born in or just after 1982 and you feel that you are more Gen X than a Millennial, the same applies. It is really up to the individuals born during the cusp years (late 1970’s to early-mid 1980’s) to decide which generation they feel a stronger connection to”

Continuing it stated that “The digital generation is providing some hope for the retirement crisis. After watching their parents suffer through two major financial bubbles and the weakest economic recovery on record, the majority of millennial are placing money aside for retirement — as long as they have a job.”

What is bond, in our own context; bond is the monetary value arrived at by actuarial evaluators due to  a public servant prior to the Pension Reform Act 2004.

These values are calculated and paid to public sector workers as their pension entitlement prior to the commencement of the Act. This with the attribute income and the employees and employers contributions from 2004 to the time of retirement with its attribute income becomes the total pension pot available to the employee.

But the discussion centered on what would be the fate of employee who gains employment in July 2004; will he be entitled to a bond? He or she will not be entitled to bond. As it is believed that government by complying with the relevant sections of the Pension Reform Act 2004 and the amended Pension Reform Act 2014 will have done their own beat as the provision for bond prior to 2004 was because there was no clear cut contribution by the government during those periods prior to 2004. Government was at that time running a defined benefit scheme.

By simple calculation, the first batch of millennial are expected to access their retirement benefit between the period 2039 and 2042. And the real millennial are expected to access their retirement benefit between 2050 and 2060. Will it be enough? Will it match the value of the bond of their predecessors?  This therefore calls for an individual’s calculation of the estimated pension pot based on your expected date of retirement. 

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