LunagisthubUnlocking Your Retirement Savings: A Guide to RSA Withdrawals
Are you aware that you can access a portion of your Retirement Savings Account (RSA) balance under certain circumstances? The National Pension Commission (PenCom) has guidelines that allow RSA holders to withdraw a percentage of their savings in specific situations
If you’ve lost your job and haven’t secured another one within four months, you may be eligible to withdraw up to 25% of your RSA balance. To qualify, you’ll need to present a formal acceptance letter of resignation or disengagement issued by your employer. According to PenCom’s Q4 2022 report, the commission granted approval for the payment of N6.31 billion to 9,966 RSA holders under the age of 50 who met this condition
In addition to mandatory savings, you can make voluntary contributions to your RSA, which offer further flexibility. However, these contributions are subject to rules and taxes. Under current guidelines, half of the voluntary contribution is classified as “contingent” and available for withdrawal, while the remaining 50% is locked until retirement to supplement pension income. Any withdrawal from the contingent portion is subject to income tax
It’s worth noting that PenCom has recently adjusted pension rules for low-income earners. Retirees whose monthly pensions are below N23,333.33 can now opt for full withdrawal of their RSA balance or continue their monthly payouts
Understanding your RSA withdrawal options can help you make informed decisions about your retirement savings. If you’re considering withdrawing from your RSA, it’s essential to familiarize yourself with the guidelines and rules set by PenCom.
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