By NIyi JACOBS
Following the implementation of the new ₦70,000 minimum wage, pension contributors and retirees with low balances are now faced with fresh options regarding how they access their Retirement Savings Accounts (RSA).
Under pension regulations, any retiree whose monthly pension falls below one-third of the new minimum wage—₦23,040—now qualifies to withdraw their entire RSA balance as a lump sum. Alternatively, they may choose to continue receiving their pension in monthly or quarterly payments, depending on personal preference.
Experts say the shift provides more flexibility for retirees, especially those managing small pension pots. However, contributors are urged to seek professional advice from their Pension Fund Administrators (PFAs) before making a final decision.
“This isn’t just about access to funds; it’s about planning smart for the future,” said an industry source. “The goal is to ensure retirees make informed choices that support long-term financial well-being.”
The development is expected to improve financial literacy around pension management while also reinforcing contributors’ rights within the system.
