The National Pension Commission (PenCom) has announced a new policy enabling low-income retirees to withdraw their entire Retirement Savings Account (RSA) balances.
The decision aligns with the recently increased national minimum wage of ₦70,000, signed into law by President Bola Tinubu on July 29, 2024.
Under the revised regulations, retirees whose RSA balances cannot fund pensions or annuities equal to one-third of the new minimum wage (₦23,333.33) may opt for a full withdrawal.
Alternatively, they can continue receiving monthly pensions until the implementation of the Minimum Pension Guarantee.
PenCom has directed Pension Fund Administrators (PFAs) to comply immediately, requiring retirees to submit consent forms, handwritten applications, and payment schedules for approval.
This policy aims to ease financial pressures on retirees while ensuring transparency and informed decision-making.
