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The National Pensions Commission is to increase monthly withdrawal limit for pensioners operating under the programmed withdrawal system from this month. Acting Director General of PENCOM Aisha Dahir-UMar disclosed this while appearing before the Senate. She also used the opportunity to state the agency’s opposition to suggestions that 75% of Retirement Saavings Account (RSAs) be paid as lump sum.

Why is PENCOM increasing the limit

According to Umar, the increase was due to the income earned on investing pension assets.

the commission has just concluded an exercise to increase the monthly pension of all retirees on programmed withdrawal due to the income earned on investing their pension assets. Pension funds  have been majorly invested in government debt securities such as treasury bills and government bonds.

Not everyone will benefit

Umar however stated that 30% of retirees will not be eligible due to the meagre size of their Retirement Savings Account (RSA). A RSA is a defined contribution plan in which both the employee and employer make monthly payments till the employee is retired.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com


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