PENCOM Announces Full Retirement Savings Withdrawal Option For Low-Income Earners

Low-earning pensioners are now allowed to withdraw their entire retirement savings either as a lump sum or continue receiving monthly pensions until the Minimum…READ MORE…

Pension Guarantee is approved.

This announcement was made in a memo from the National Pension Commission (PENCOM), signed by A.M. Salem, Head of the Surveillance Department. The memo, dated November 27, 2024, informed pension fund administrators of the update, following a revision to Section 4.1(g) of the pension regulations to reflect the new N70,000 minimum wage.

Previously, retirees were allowed to withdraw only one-third of their total Retirement Savings Accounts (RSAs).

The memo highlighted that President Bola Tinubu signed the National Minimum Wage Bill into law on July 29, 2024, increasing the minimum wage from N30,000 to N70,000. Under the revised regulation, retirees whose pensions fall below one-third of the new minimum wage (N23,333.33) can choose to withdraw the entire balance from their RSAs or continue receiving their pension until the Minimum Pension Guarantee begins.

Pension fund administrators are directed to apply the new N70,000 minimum wage when processing retirement benefits. Those opting for the lump sum withdrawal must submit the necessary documents to PENCOM for approval.

The memo also emphasized the importance of compliance with these new provisions, effective immediately.

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