Cornerstone Insurance Insight: How to plan your financial future with smart retirement choices

Nike Popoola

Planning for your financial future is one of the most important steps you can take especially if you’re still working. Whether you are employed by an organisation or running your own business as an entrepreneur, the choices you make today will determine the quality of your retirement years. Cornerstone Insurance Plc remains a trusted partner committed to helping individuals secure their future through well-structured annuity plans.

It is not advisable to spend all your income on immediate needs alone. Setting aside a portion of your earnings provides long-term security and helps you avoid financial pressure in your older years. People who plan ahead through disciplined saving and investment enjoy more stability and peace of mind than those who consume everything they earn.

Speaking on the importance of annuity, Peter Ekwueme, Executive Director, Technical Operations at Cornerstone Insurance Plc, explained:
“Annuity is a contract between an annuitant (policyholder) and an insurance company, where the annuitant deposits a lump sum and the insurer guarantees a fixed payment at agreed intervals, monthly, quarterly, etc. typically for the rest of the policyholder’s life. Payment stops upon the annuitant’s death, except for plans that include a guaranteed period.”

Under the Contributory Pension Scheme (CPS) provided by the Pension Reform Act, retirees can use their Retirement Savings Account (RSA) as life annuity. This ensures steady income for life, regardless of how long the retiree lives. In addition, if the retiree passes away within the first 10 years of the annuity, their beneficiaries receive payments for the remainder of the 10-year guaranteed period.

Even individuals without an RSA or outside the CPS can access Cornerstone’s annuity options. In this case, the insurer provides structured payments for as long as the annuitant lives, guaranteeing lifelong financial stability.

For more information, visit any Cornerstone Insurance branch, call 0708 621 6957, or visit www.cornerstone.com.ng.