About 131,376 workers, who retired from active service, cannot be placed on monthly pensions, says National Pension Commission.
PenCom said the affected retirees had below N550,000 as the balance in their RSAs. As such, PenCom said the retirees were not qualified to be enrolled in either of the two retirement options.
The 131,376 retirees indicates a 14.4% increase from the 114,837 retired workers that withdrew N28.46bn as of the end of June 2020. Between June 2020 and December 2021, PenCom said the affected retirees rose by 16,539 who withdrew N4.12bn.
The pension regulator also said some foreign nationals returning to their countries withdrew their savings before leaving.
While explaining how the pension savings work, PenOp said, If a worker were to save N20,000 consistently every month for 15 years with an interest rate of 10 per cent per annum compounded for the 15 years, at the end of the period, he would have amassed over N16m.
“This is the power of consistency and compounding which the current system provides, and which should be encouraged.”
PenOp explained that under the CPS, it is what the worker puts in plus investment returns that he gets out.
