The National Pension Commission (PenCom) says it has lifted the age limitation on its Personal Pension Plan, now allowing students and newborns to begin contributing towards their retirement savings.
Director-General, Omolola Oloworaran, disclosed this after the second Pension Industry Leadership Council meeting in Lagos on Tuesday.
This means Nigerians of all ages now have access to the personal pension plan to secure their retirement and broaden financial security.
Before now, only self-employed persons and professionals, not below the age of 18, were eligible to participate in the PPP.
What PenCom is saying
Speaking after the second Pension Industry Leadership Council meeting in Lagos, Oloworaran highlighted that this initiative is a significant step toward strengthening the country’s pension system and making retirement savings accessible to a broader demographic.
According to Oloworaran, both students and infants can now voluntarily contribute to their personal pension plans, marking a shift from previous system limitations. She urged parents to take advantage of this opportunity to start saving for their children’s futures from birth.
- “The Personal Pension Plan is now open to everyone. The age limitations that existed before have been lifted. Students and newborns can begin contributing,” she said.
PenCom said it is also working on initiatives to make the scheme more appealing and accessible to a larger portion of the population.
In addition, Oloworaran provided updates on the PenCare initiative, which will soon distribute the first tranche of healthcare premiums to low-income retirees, offering them access to free medical care. The official launch of this program is expected in the coming weeks.
Driving growth and financial security
PenCom’s decision to open the Personal Pension Plan to a younger demographic aligns with its broader goal of increasing pension enrollment and positioning pension funds as key drivers of economic growth.
- Earlier this year, PenCom approved a significant pension increase for retirees under the Nigeria Social Insurance Trust Fund (NSITF).
- This decision ended a 21-year pension freeze and improved the financial well-being of over 2,100 retirees. Some retirees saw their monthly pensions increase by as much as 1,000%, with payments rising from as low as N18,000 to N206,000.
In addition, PenCom authorized the payment of N8.70 billion in arrears, offering lump-sum payouts averaging N3 million per beneficiary, with some retirees receiving up to N8 million.
More insights
Oloworaran emphasized PenCom’s commitment to repositioning pension funds as active contributors to Nigeria’s economic development.
She stated that the pension industry is moving towards a model where pension funds play a more dynamic role in stimulating growth and enhancing financial markets.
- “We are transitioning into a new phase, one focused on leadership, coordination, and teamwork. Pension funds will no longer be passive investors; they will actively drive economic development,” Oloworaran affirmed.
What you should know
Earlier this year, PenCom launched a self-service online platform, the Data Recapture Self-Service Platform (PENCAP), allowing pension contributors to remotely update their personal information.
This development aims to address challenges such as incomplete records, delays in benefit access, and congestion at Pension Fund Administrator (PFA) offices nationwide.
