+Income Buffers for RAAs
Income Straits of RAAs
A higher proportion (70%) of the retired, aged, and ageing population in Nigeria earn N50,000 per month or less or nothing, according to a study sample by Dataphyte and JAIRAA.
At this income level, the retired, aged, and ageing (RAAs) live below the global poverty line.
According to the World Bank, the poverty line is estimated at $2.15 or N3,190 per day (at N1,484 per dollar).
Given that a month has thirty days on average, the average monthly living cost at the poverty line amounts to N95,700,
This amount is N45,000 more than the income earned by most retirees in Nigeria
The lack of social security, poor social services, and subpar medical facilities make Nigeria’s elderly vulnerable to disease and poverty, according to an African Health Sciences Journal.
While some older individuals struggle to make ends meet and depend on friends, family, and children for support, others resort to begging as a means of livelihood.
Reducing poverty in the elderly needs full participation from other age groups. This means that to avoid and end elder poverty, other age groups must work towards it either by saving to prevent them from suffering the same fate or by providing financial support to retirees.
Income Options for RAAs
The research conducted by Dataphyte and JAIRAA titled “Access to care and Services for the Retired, Aged, and Ageing Population in Nigeria” states that 67% of all retirees in the study sample live off their savings and earnings, with the remaining 15.9% relying on their children, 8.9% on family, and 4.8% and 3.2% on siblings and grandchildren, respectively.
These savings and earnings by Retired, Aged, and Ageing (RAAs) persons could include that from pension savings. However, some RAAs still engage in mental and manual work to make ends meet.
The study also showed that some elderly and retired individuals do not have sufficient clarity about retirement savings plans.
According to the study, 34% of respondents had a basic understanding of the Pension Commission (PENCOM), the organisation in charge of policing and monitoring the actions of pension fund administrators, while 66% of respondents did not.