Now that new findings are projecting that people could leave up to 150 years soon, it will be a sad moment if one retires at 65 and have to tag along with life, managing meagre fund that have been saved up from deductions from monthly salaries while in active service.   

There is a better way to make life meaningful after retirement and the National Pensions Commission (PenCom) is providing a suggestion.

You know that money can never be enough, so PenCom is suggesting that employees can make Voluntary Contributions (VC) into their Retirement Savings Account (RSA) aside mandatory pension contributions.

That money that you have no immediate need for while in active service could be set it aside, putting it in your RSA to increase the amount of money that will be in the account at retirement. 

The commission’s spokesman, Mr Peter Aghahowa, says the Pension Reforms Act (PRA) 2014 permits employees to make VC into RSA besides the mandatory pension contributions.

Aghahowa said the sole aim of the VC was to enhance retirement benefits of Nigerian workers after giving their all to serving the nation.

He said: “It is pertinent to note that the PRA 2014 permits employees to make voluntary contributions into their RSA in addition to the mandatory pension contributions to enhance retirement benefits.

“The contributions must not necessarily be made through the employer".

He explained that the guidelines spelt out criteria for participation included eligibility, procedures for contributions, safeguards and modalities for its withdrawals.

Aghahowa said other objectives of such contributions were “to assist retirees under the defunct Defined Benefit Scheme (DBS) exempted from the Contributory Pension Scheme (CPS) and foreigners to enhance savings for livelihood at old age.

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“To encourage retirees under CPS to utilise part or all of the Voluntary Contributions to augment their existing pensions.’’

If you want to make more contribution to your RSA, the PenCom official suggests that you follow the guideline and direct further enquiries on VC to their respective Pension Fund Administrators (PFAs).

PenCom further urged the contributors to obtain full guidelines from the commission or their PFAs.

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