In the first half of 2024 (H1’24), a total of 14,179 Retirement Savings Account (RSA) holders who lost their jobs withdrew 25% of their pension savings to sustain themselves and their families.
According to the National Pension Commission (PenCom), these individuals accessed N23.4 billion from their pensions, with N9.2 billion withdrawn in the second quarter (Q2’24), marking a slowdown from the N14.2 billion withdrawn by 8,651 RSA holders in Q1’24.
Experts attribute the higher withdrawals in Q1 to the typical financial pressures at the start of the year.
PenCom’s Q2 report further revealed that out of the 5,528 RSA holders who withdrew pension funds, 5,223 were from the private sector, while 305 were public sector employees.
In addition, the report highlighted that 1,234 RSA holders accessed N10.5 billion for residential mortgage financing, allowing them to use up to 25% of their pension savings for equity contributions.
However, 156 applications were rejected due to incorrect documentation.
The report also covered the payment of death benefits, with 4,376 approved beneficiaries accessing N29.3 billion in death benefits for deceased employees and retirees.
Of these, 807 beneficiaries were from the private sector, while 3,569 were from the public sector. Incorrect documentation resulted in the rejection of 11 applications for death benefits.