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Economic Hardship Drives N7.6 Billion Pension Withdrawals In Q2’23

Daud Olatunji

In the midst of ongoing economic challenges, disengaged workers have pulled a staggering N7.6 billion from their pension savings during the second quarter of 2023 (Q2’23), accounting for 25% of their contributions. This follows a prior withdrawal of N12.7 billion in the first quarter of 2023 (Q1’23).

According to the latest report from the National Pension Commission (PenCom), these withdrawals were necessitated by temporary job losses, permitted under the Pension Reform Act for workers who have been unemployed for four months or more.

Surprisingly, Q2’23 saw a noticeable drop in the number of Retirement Savings Account (RSA) holders tapping into their pensions, with 8,423 individuals accessing their savings. This marks a 35.8% decrease compared to the 13,126 RSA holders who withdrew funds in Q1’23.

The report reveals that out of the 8,423 applicants granted access to their RSA balances, 8,067 originated from the private sector, while the remaining 290 belonged to the public sector, collectively receiving a total payout of N7,631.28 million. 

Notably, 30 requests were rejected, primarily due to the applicants being over 50 years of age.

As economic challenges persist, pension withdrawals remain a lifeline for those grappling with job loss, offering a glimpse into the evolving landscape of Nigeria’s pension industry.

 

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