PenCom cautions retirees on withdrawal of lump sum

From left: Executive Secretary Pension Fund Operators Association of Nigeria, Susan Oranye; Head Business Development and Sale AIICO Pension Managers Limited, Godwin Igbanoi and Head Research & Corporate Strategy National Pension Commission, Dr Farouk Aminu at the event.

Chuks Udo Okonta 

The National Pension Commission (PenCom) today urged retirees to forestall the quest of withdrawing huge fund from their Retirement Benefits  Account balance so that they can have robust monthly pension.

The Head, Research & Corporate Strategy PenCom, Farouk Aminu, said this at the 2015 National Association of Insurance and Pension Correspondents Annual General Meeting (AGM) in Lagos.

He noted that many retirees have burnt their fingers with such decisions, adding that the quest to withdraw fabulous amounts at retirement, leaving little in the account is responsible for the little monthly pension some retirees receive.

 

From left: Head Business Development and Sale AIICO Pension Managers Limited, Godwin Igbanoi; Executive Secretary Pension Fund Operators Association of Nigeria, Susan Oranye; Head Research & Corporate Strategy National Pension Commission, Dr Farouk Aminu; President National Association of Insurance and Pension Correspondents, Modestus Anaesoronye  and Head Corporate Communications Premium Pension Limited at the event.

He called on retirees to take less lump-sum payout if they don’t have need for much financial needs, stressing that less lump-sum will help them keep more money in their accounts.

"People should take less lump sum unless they need it. If they do not need it, they should not take it. It is important people really understand this. The more lump sum you take the less money you leave in your RSA and the lower your pension. 

"People take much of their money and blow it and expect the little they left to perform wonders. People should leave a lot of money behind so that they can have huge pension," he said.

He noted that the National Insurance Commission (NAICOM), Nigeria Stock Exchange (NSE) and the Trade Union Congress (TUC) have been added to the board of the PenCom, which before now, had the Nigeria Labour Congress (NLC), Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Nigeria Union of Pensioners; Private sector and Federal Government.