AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Start from what you spend today, remove costs that end at retirement (commuting, school fees, possibly rent), add more for health, then grow the result by an inflation rate for each year until you retire. In our labelled example, ₦250,000 a month in today's money becomes about ₦2.7 million a month at 60 if prices rise 10% a year for 25 years.
Why a percentage of salary is not enough
Foreign guides often say you need 70% to 80% of your final salary. In Nigeria that shortcut can mislead: many people retire into a house they own and have no school fees, but face higher health costs and continuing family obligations. Working from your own spending is more reliable.
Step 1: your retirement spending in today's naira
List your current monthly spending, then adjust each line for life after work.
| Line (labelled example) | Today | In retirement, today's naira |
|---|---|---|
| Rent | ₦100,000 | ₦0 (house owned by 60) |
| School fees | ₦90,000 | ₦0 |
| Commuting | ₦60,000 | ₦10,000 |
| Food | ₦100,000 | ₦80,000 |
| Health | ₦15,000 | ₦50,000 |
| Power, water, phone | ₦45,000 | ₦45,000 |
| Family support and giving | ₦30,000 | ₦40,000 |
| Other | ₦40,000 | ₦25,000 |
| Total | ₦480,000 | ₦250,000 |
Musa, 35, spends ₦480,000 a month. If he owns his home by 60, his retirement spending in today's money is about ₦250,000. If he will still rent, add the rent back and the target nearly doubles.
Step 2: adjust for inflation
Prices rise every year, so ₦250,000 today will buy far less in 25 years. Multiply by (1 + inflation rate) raised to the number of years. The NBS put headline inflation at 14.63% year on year in September 2026, as reported by Voice of Nigeria, but no one knows the average for the next 25 years, so test a range.
| Assumed average inflation | Growth factor over 25 years | Monthly need at 60 |
|---|---|---|
| 8% a year | 6.85 | About ₦1.71 million |
| 10% a year | 10.83 | About ₦2.71 million |
| 12% a year | 17.00 | About ₦4.25 million |
The factors are 1.08, 1.10 and 1.12 raised to the 25th power, applied to ₦250,000 and rounded. The large numbers are not a mistake; they show why saving in naira that earns less than inflation does not build a pension.
Step 3: turn the income into a target pot
BusinessDay's January 2025 explainer gives the basic programmed-withdrawal sum as the RSA balance divided by expected months, for example ₦10 million over 240 months giving about ₦41,667 a month. Using the same simple division in today's naira, ₦250,000 a month for 240 months (age 60 to 80) needs about ₦60 million. In practice the pot keeps earning returns while you draw it down, so the real figure is lower, and your PFA's calculation uses mortality tables, assumed returns and fees, according to PenCom's December 2024 guidance note.
A worked check against a pension projection (labelled example)
Suppose Musa's PFA projects a pension at 60 worth ₦120,000 a month in today's money. His need is ₦250,000, so the gap is ₦130,000 a month in today's terms. That gap is what voluntary contributions, rental income or other investments must fill. Expressing both figures in today's naira keeps the comparison clear; mixing future and present naira is the most common mistake in retirement sums.
Common mistakes
- Assuming your children will fund retirement. They may help, but planning around it shifts your risk onto them.
- Using today's inflation rate, high or low, as if it will hold for 25 years.
- Forgetting health costs, which usually rise with age.
- Counting on a house to provide income without budgeting for repairs and empty months.
- Leaving the calculation until the last five years of work, when there is little time to close a gap.
- Ignoring a spouse's needs if one partner is likely to outlive the other.
Where retirement income can come from
- Your RSA under the Contributory Pension Scheme. KPMG's summary of the Pension Reform Act 2014 says benefits start at retirement or age 50, whichever is later, as programmed withdrawal or life annuity.
- Voluntary pension contributions on top of the mandatory ones.
- The National Housing Fund: Templars' note on the amended NHF Act describes a refund of contributions for contributors who did not take an NHF loan, on reaching 60 or retiring.
- Rent from property. See rental income yields and costs.
- Investments outside the RSA, and part-time work.
For how these combine, see retirement income sources in Nigeria.
Steps
- List today's spending and adjust each line for retirement.
- Choose a cautious inflation assumption and test a higher one.
- Ask your PFA for a projection of your RSA at 60 on current contributions.
- Compare the projected pension with your need; the gap is what voluntary savings, property or investments must fill.
- Repeat every two or three years, and whenever your income or plans change.
The point is not a perfect figure. It is a number you can compare with your PFA's projection each year, so a gap shows up while there is still time to close it.
Where Pryme fits
A naira Investment Box funds Solid Allianze Microfinance Bank's lending, with the return depending on that lending and the money held to maturity; rates are shown in the app. Holding part of long-term savings in another currency is possible in a Pryme Personal Account, where money stays in the currency it arrived in.
Questions people ask
How much do I need to retire in Nigeria?
Estimate your monthly spending in retirement in today's naira, grow it by inflation to your retirement year, and multiply by the months it must last, less expected returns.
How much pension will I get monthly?
Your PFA calculates it from your RSA balance, life expectancy, assumed returns and fees. Ask for a projection.
At what age can I collect my pension in Nigeria?
Under the Pension Reform Act 2014, benefits start at retirement or age 50, whichever is later.
How does inflation affect retirement planning?
It raises the naira amount you will need. At 10% a year, prices multiply by almost 11 over 25 years.
Sources
- NBS CPI September 2026: headline inflation 14.63% (Voice of Nigeria) · accessed Oct 2026
- How your monthly pension is calculated and paid (BusinessDay, 15 Jan 2025) · accessed Oct 2026
- PenCom guidance note on revised programmed withdrawal template v2 (Dec 2024) · accessed Oct 2026
- Pension Reform Act 2014 summary (KPMG Nigeria) · accessed Oct 2026
- Amendment of the National Housing Fund Act and contribution into the NHF (Templars, Apr 2023) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.