A pension is a fund in which a sum of money is saved during an employee’s active years towards their retirement. The money saved with a pension company are drawn to support a person’s retirement from work in the form of periodic payments.
One of the most common misconceptions that people have about pensions in Nigeria is that pensions is for old people; this couldn’t be further from the truth as you need to start saving for your retirement right from your first job.
Here are 5 things you probably didn’t know about pensions in Nigeria.
1. You are eligible to enrol under the Contributory Pension Scheme if you work in or run an organisation with at least 3 or more staff.
2. Did you know that the contribution rate is a minimum of 18% of monthly Basic Salary, Housing and Transport allowances, with your Employer contributing at least 10%.
3. You can withdraw from your Retirement Savings Account before you retire if you have been out of employment for up to four months. You will be allowed access to 25% of your balance.
4. You can save some extra money if you want into your Retirement Savings Account called the Additional Voluntary Contributions. You are entitled to withdraw 50 % from the additional voluntary contributions once every 2 years.
5. Legacy pension provides the best pension and retirement saving services in the country. As a leading Pension Fund Administrator in Nigeria, Legacy pension has services and features that makes saving for your retirement fun and easy.
Visit www.legacypension.com to learn more.
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