What is ARRIS
AARIS Scheme operates on the following Model and Parameters:
Amount Expected At Retirement (2,000,000)
- Monthly Savings.
- Initial amount deposited (N80,000)
- Years of Contribution (The number of years left for subscriber, 5-15 years, contributory)
- Annual Rate of Returns (%).Assumptions:
- Beneficiary has saved the sum of N80, 000 already as a retirement contribution at time (t),
- He has minimum of 5 years left in service at time (t) or if less make up contribution to meet up becomes necessary.
- Annual Return Rate (ARR) is put at the minimum of 11%
- AARIS monthly Investment contribution must not be less than N25, 000
How much should I save monthly to be able to realize N2,000,000, with 5 years left in service?
- Initial amount deposited ==================== N80,000
- Monthly savings (over 5 years=60 months) ========N25,000
- Years left in service======================== 5 Years (60 Months)
- Annual Return Rates (ARR)================== 11%
Interpretation: for any civil servant that have maximum of 5 years left to retire, and wishes to subscribes to the AARIS scheme, and expected to make N2,000,000 at retirement point, can only achieve that by making monthly contribution of N25,000 (Twenty five thousand naira over 5 years (60 months).