By Dipo Kehinde/
While over 12 million UK pensioners are enjoying a 4.1% increase in their state pensions this month, courtesy of a robust and predictable annual review mechanism, millions of Nigerian retirees remain trapped in a system plagued by irregular payments, inadequate benefits, and an uncertain future.
Under the UK’s Triple Lock system—introduced to ensure pensioners’ incomes keep pace with inflation and living standards—pension rates rise annually based on the highest of three measures: inflation (CPI), average wage growth, or 2.5%. This year’s boost is tied to wage growth between May and July 2024, securing an extra £470 per year for those on the full new State Pension and £360 for those on the basic scheme.
For UK pensioners, this means more money in their pockets:
New State Pension: From £221.20 to £230.25/week
Basic State Pension: From £169.50 to £176.45/week
Pension Credit for low-income retirees: Singles now receive £227.10/week; couples, £364.60/week
This reliable, legislated adjustment offers retirees not just financial stability but peace of mind—a stark contrast to the Nigerian pension system, where pensioners often face delays stretching into months or even years, unpaid arrears, and poor indexing to inflation.
Despite the establishment of the Pension Reform Act 2014 and the Contributory Pension Scheme (CPS), Nigerian pensioners still grapple with multiple systemic issues:
Delayed gratuities and irregular monthly stipends, especially at state levels
Inflation that erodes fixed pensions, as there is no annual adjustment tied to economic indicators
Inadequate coverage, with large informal sectors excluded
Overreliance on PENCOM without sufficient federal enforcement
Lessons Nigeria Must Learn
The UK’s success lies in the consistency, transparency, and equity of its system. By anchoring pension increases to economic realities, it ensures retirees are not left behind in a changing economy.
Nigeria must:
- Introduce an inflation-indexed pension adjustment formula, similar to the Triple Lock
- Enforce timely payment of pension arrears and monthly stipends
- Expand pension coverage to include informal workers and low-income earners
- Make pension funding and disbursement more transparent and accountable
Pension is not a privilege—it is a right earned through decades of service. If the UK can commit to sustaining dignity for its elderly, there is no excuse for Nigeria’s recurring pension crises.
As UK pensioners see a welcome bump in their bank accounts this May, Nigerian pensioners are still asking the same question: When will justice reach our wallets?
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