Low-earning pensioners in Nigeria are now permitted to withdraw their entire retirement savings en bloc or continue receiving their monthly pension, pending the approval of the Minimum Pension Guarantee. This new policy was outlined in a memo by the National Pension Commission (PENCOM), signed by the Head of the Surveillance Department, A.M. Salem.
The memo, dated November 27, 2024, and obtained by our correspondent in Abuja, reveals that the change follows the revision of Section 4.1(g) of the regulations governing the administration of retirement and terminal benefits. The update aligns with the implementation of the new minimum wage of N70,000.
Prior to this policy shift, retirees were only allowed to withdraw one-third of their total Retirement Savings Accounts (RSAs), with the rest being paid out in monthly installments. The new provision offers pensioners more flexibility in accessing their funds, particularly benefiting those with lower earnings.
PENCOM’s move has been welcomed by many, as it addresses concerns about the financial challenges faced by low-earning retirees. However, the commission emphasized that the full withdrawal option is subject to the finalization of the Minimum Pension Guarantee, which is expected to further bolster the financial security of retirees.
This development marks a significant shift in the pension landscape, providing more options for retirees to manage their finances in their post-working years.
