摘要：The inflation rate reduces the value of the income of fixed income earners such as wage andpension. This calls for continuously increasing the income to ensure that employees standard ofliving is not rapidly depleted. Contributory pension scheme in Nigeria contributes fifteen percentof the employee's emolument to the retirement account. The contribution made in the early yearsof employment adds very little to the total fund at the time of retirement because of thecontinuous growing wages. The study develops an equation between the present value of theexpected pension annuity with fund contributed from wages and present value of the regulation.The study finds that a close one hundred (100%) percent of the employee's wages will berequired to be contributed to the retirement savings account to guaranteed employee'sreasonable standard of living at retirement.The study recommends that since the interest cannotbe influenced, the contribution percentage should be substantially increased immediately to savethe future of the employees
关键词：Pension; Inflation Rate; Wages; Retirement and Interest rate
