Sometimes, it amazes me that with the avalanche of information in the public space about pension, the level of dis-information far exceed the level of credible information. It is almost like people imagine what they want to believe (which is mostly negative) and mainstream it.
Que: Can you access a part of your pension fund before retirement?
Ans: Yes! You can access 25% of your RSA 4 months after dis-engagement if you are less than 50 years old. This can only be accessed once. Apart from docs that validates your identity, the important documents to..
Ans: Yes! You can access 25% of your RSA 4 months after dis-engagement if you are less than 50 years old. This can only be accessed once. Apart from docs that validates your identity, the important documents to..
...provide to access this are 1. Exit letter from your former employer and 2. Confirmation letter from former employer to your PFA.
ps - This is why I advise people never to leave an org in acrimony. No matter what happened, never leave fighting because u might need them later.
ps - This is why I advise people never to leave an org in acrimony. No matter what happened, never leave fighting because u might need them later.
Que: What about on Retirement, do I still get a lump-sum?
Ans: Yes! You can get a lump sum on a programmed payment or annuity payment provided that the amount left in the RSA is sufficient to purchase an annuity or fund programmed withdrawals that will produce an amount which...
Ans: Yes! You can get a lump sum on a programmed payment or annuity payment provided that the amount left in the RSA is sufficient to purchase an annuity or fund programmed withdrawals that will produce an amount which...
....is not less than 50% of the RSA holder’s total annual remuneration at the date of his retirement.
What your the Pension Act tries to achieve is that at retirement, you are able to enjoy at least 50% of your monthly and annual salary while in service.
What your the Pension Act tries to achieve is that at retirement, you are able to enjoy at least 50% of your monthly and annual salary while in service.
Que: Can I do voluntary contribution (VC) with my normal pension contribution?
Ans: Yes! But understand that 50% of your VC is "available" and 50% is blocked and can only be accessed on retirement along with your RSA.
The 50% available can only be withdrawn once every 2 years.
Ans: Yes! But understand that 50% of your VC is "available" and 50% is blocked and can only be accessed on retirement along with your RSA.
The 50% available can only be withdrawn once every 2 years.
And should you withdraw from it within the first 5 years, the income accrued on it is taxable. The point is to ensure that you don't withdraw from it for the first 5 years so the fund has the maximum ability to extract the highest possible yield.
Que: I hear that the process for getting your pension on retirement is stressful?
Ans: No it is not. It is only stressful for those who are not prepared.
Look one day, God willing, you will retire and you will realise that certain documents are very important to keep.
Ans: No it is not. It is only stressful for those who are not prepared.
Look one day, God willing, you will retire and you will realise that certain documents are very important to keep.
Below is a list of documents to keep because upon retirement, YOU WILL NEED IT TO CLAIM YOUR PENSION
1. Birth Certificate
2. Employment Letter
3. Payslips (All of them)
4. Marriage Cert or Change of name (mostly for women)
5. Exit Letter (Resignation, etc)
5. Retirement Letter
1. Birth Certificate
2. Employment Letter
3. Payslips (All of them)
4. Marriage Cert or Change of name (mostly for women)
5. Exit Letter (Resignation, etc)
5. Retirement Letter
Most people who complain of long stressful process are people who have problem with producing these documents or whose details (in the documents) don't match the details in the PFA file. Your retirement plan must start from ensuring that all these documents are compiled & intact.
This is in response to several tweets I have received about the payslips. Please see below for clarification. 👇👇👇
