By Tony Obiechina Abuja
The National Pension Commission has disclosed that 23,673 disengaged workers withdrew a total of N33.43bn from their Retirement Savings Accounts in the third quarter of 2024.
The withdrawals were made under the provisions of the contributory pension scheme, which allows workers who lose their jobs to access up to 25 per cent of their pension savings after four months of unemployment.
Data from the latest Pension Industry Information Dashboard for Q3 2024 shows a decline in the number of unemployed contributors withdrawing from their pension savings compared to previous years.
In 2023, 39,470 contributors withdrew N35.48bn, reflecting a significant drop in the number of applicants and the total amount accessed in 2024.
In 2022, 40,707 unemployed contributors withdrew N27.78bn, while in 2021, 40,858 individuals accessed N20.86bn.
In 2020, 31,716 workers withdrew N17.39bn, showing a steady increase in withdrawals before the decline in 2024
However, the figure for 2024 was as of September, which means that the figure may likely increase by the end of the year.
Since the inception of the contributory pension scheme, a total of 176,424 disengaged workers have accessed their pension savings, withdrawing a cumulative N134.94bn.
On this type of withdrawal, PenCom noted, “Any employee who voluntarily retires, disengages or is disengaged from employment before the age of 50 years and wishes to withdraw an amount not exceeding 25 per cent of his RSA balance shall only do so after four months if he/she is unable to secure another employment.”
The report also highlighted continued growth in pension participation, with the number of registered Retirement Savings Accounts reaching 10,536,088 as of the third quarter of 2024.
This marks a 13.93 per cent increase over the past five years, up from 9,215,788 in Q4 2020.
In the year-to-date period for 2024, 118,339 new RSA registrations were recorded, reflecting increasing awareness and adoption of the pension scheme.
The data further revealed that 61 per cent of RSA holders are male, while 38 per cent are female, indicating a gender gap in pension enrolment.
Cumulative pension contributions since the launch of the contributory pension scheme stood at N10.97trn as of the third quarter of 2024.
The public sector accounted for N5.71tn, while the private sector contributed N5.25tn.
Public sector pension contributions have risen from N3.43tn in 2019 to N5.71tn in 2024, while private sector contributions increased from N3.27tn to N5.25tn over the same period.
The steady rise in contributions highlights the continued expansion of the pension industry and increased compliance with pension remittance regulations, although concerns persist about some employers failing to meet their obligations.
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