Amid ongoing economic challenges, 14,179 Retirement Savings Account (RSA) holders who lost their jobs this year have withdrawn 25% of their pension savings to support themselves and their families in the first half of 2024 (H1’24).
According to the second quarter (Q2) report from the National Pension Commission (PenCom), these RSA holders withdrew a total of ₦23.4 billion during the period.
The report shows a decrease in withdrawals in Q2’24 compared to Q1’24. In the first quarter, 8,651 RSA holders withdrew ₦14.2 billion, while in Q2, 5,528 RSA holders withdrew ₦9.2 billion. Analysts suggest that the higher withdrawals in Q1 may be due to typical early-year financial strains.
The PenCom report for Q2’24 detailed: “Among the 5,528 approved applicants, 5,223 were from the private sector and 305 from the public sector. A total of ₦9.3 billion was approved for RSA holders under the age of 50.”
Regarding residential mortgage financing, the report noted: “In the quarter under review, 1,390 RSA holders requested to use up to 25% of their RSA balances for equity contributions on residential mortgages. Of these requests, 1,234 were approved for a total of ₦10.5 billion, while 156 were rejected due to incorrect documentation. Among the approved applicants, 379 were from the private sector and 855 from the public sector.”
On death benefits, the report revealed: “A total of 4,387 beneficiaries applied for the death benefits of deceased employees/retirees. Out of these, 4,376 requests were approved, with 11 rejected due to incorrect documentation. The approved benefits totaled ₦29.32 billion, with 807 beneficiaries from the private sector and 3,569 from the public sector.”