September 21, 2023

Hardship: Contributors withdraw N7.6bn from pension savings

The Nigerian Pension Industry – A journey with definite destination (2)

By Rosemary Iwunze

As economic hardship persists, a total of N7.6 billion was withdrawn by disengaged workers from their pension savings in their Retirement Savings Accounts, RSAs, in the second quarter of 2023, Q2’23. The withdrawals represent 25 per cent of their pension contribution.

The hard-hit ex-workers had withdrawn N12.7 billion in the first quarter of 2023, Q1’23.

According to the Q2’23 report released by the National Pension Commission, PenCom, the withdrawals were made by the contributors due to temporary loss of employment.

The Pension Reform Act permits disengaged workers to withdraw 25 per cent of their pension savings four months after losing their jobs.

Meanwhile further findings show that a total number of 8,423 RSAs holders withdrew from their pension savings in Q2’23.

The figure represents a decline of 35.8 per cent from 13,126 RSA holders that withdrew from their pension savings in Q1’23.

The report stated: “A total of 8,453 RSA holders requested to access 25% of their RSA balances due to temporary loss of employment in Q2’23. Out of that, 8,423 RSA holders’ requests were approved, while 30 were rejected because their ages were above 50 years. Out of the 8,423 applicants whose benefits were approved, 8,067 were from the private sector, while the remaining 290 were from the public sector. They were paid N7,631.28 million”.