According to the Q4’23 report released by the National Pension Commission (PenCom), there has been a significant increase in Retirement Savings Account (RSA) holders withdrawing from their pension savings due to job loss.
The report reveals that 10,299 RSA holders withdrew from their pension savings in Q4’23, marking a 33.9 percent increase from the previous quarter.
“In Q4’23, a total of 10,307 RSA holders requested to access 25% of their RSA balances due to temporary loss of employment,” the report stated. “Out of that, 10,299 RSA holders’ requests were approved, while eight were rejected because their ages were above 50 years.”
The Pension Reform Act allows disengaged workers to withdraw 25 per cent of their pension savings four months after losing their jobs, contributing to the rise in withdrawals.
Out of the 10,299 applicants whose benefits were approved, 9,819 were from the private sector, indicating a significant impact on private sector workers. Meanwhile, the remaining 480 were from the public sector.
Furthermore, the report highlights a notable increase in requests for accessing pension savings for residential mortgage contributions. A total of 1,128 RSA holders requested to access up to 25% of their RSA balances towards payment of equity contributions for residential mortgage during the quarter under review.
Approvals were granted to 991 requests amounting to N9,618.74 million, indicating a substantial need for housing support among pension contributors. However, 137 requests were rejected due to incorrect documentation.
The report underscores the challenges faced by RSA holders amid economic uncertainties, emphasizing the need for robust support mechanisms to safeguard retirees’ financial well-being.
