Accessing Your Pension Benefits

In another episode of "Your Pension, Your Money, Your Future," Oguche Agudah and Umar Mairami, prominent figures in Nigeria's pension industry delved into the transformative journey of the country's pension management system. Many Nigerians have misconceptions about accessing their retirement benefits under the Contributory Pension Scheme (CPS). Today, PenCom and PenOp are working together to dispel these myths and assure contributors that the process is designed to be transparent, efficient, and free of charge.

Mr. Mairami addressed common misconceptions about the management of retirement savings accounts (RSAs), emphasizing the industry's commitment to transparency. "Unlike the impression most people have that we take the money and just give them what we want, no. When the monies come to the last kobo, they get into their retirement savings account. We present our invoice, our fees are approved before we now deduct the fees at the end of the month," he explained. This process ensures that all transactions are thoroughly documented and approved by regulators before any deductions are made.

The pension industry is dedicated to making pension plans accessible to all segments of the workforce, not just government and corporate employees. "Even event planners, Instagram influencers, and those working for small businesses with less than three employees can now join the micro pension plan to conveniently save for the future they want," Marami stated. This initiative, supported by PenCom and PenOp, aims to include every working Nigerian in the pension system.

To address concerns about the withdrawal process, Mr. Mairami emphasized the importance of accurate and updated documentation. "The journey to withdraw from your retirement savings account starts from the very day you register with the PFA. Regular updates of your documentation are crucial for a smooth transition to retirement," he advised.

He also dispelled myths about the difficulty of accessing funds, explaining that retirees and their beneficiaries are entitled to their funds to the last kobo. "Since 2007, the pension industry has paid out approximately 2.2 trillion naira in benefits. This includes lump sums, annuities, and death benefits," Mairami noted, highlighting the industry's significant contributions to retirees' welfare.

In response to evolving needs, the industry has introduced several digital solutions to enhance accessibility and convenience for contributors. "Contributors have several ways to check their balances, including online platforms, SMS alerts, monthly or quarterly statements, and mobile apps. We've also deployed support on social media platforms like WhatsApp, Telegram, and Facebook," Mairami highlighted.

Mr. Mairami encouraged contributors to actively engage with their pension administrators throughout their careers. "Regular interaction with your PFA and updating your documentation every two years can prevent complications at retirement. Our data recapture exercise is designed to ensure that all information is current and accurate," he said.

The pension industry remains steadfast in its commitment to transparency and fairness. "We encourage our contributors to visit our websites and PenCom's website to familiarize themselves with the documentation requirements and regulations. We are here to ensure that your transition to retirement is as seamless as possible," Mairami concluded.

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