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Nigerians contributing pension increased to 9.5 million in 2021

Nigerian Pension Fund Index beats inflation, claiming double digit gains for 2021.

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In 2021, the Nigerian Pension industry achieved a glittering milestone of total accrued find assets under management totaled as much as N1.12 trillion last year. This brings ot to hitting a record high of N13.42 trillion. Alternatively, Nigeria experienced a massive increase in pension penetration, detailing up to 14% after 313,339 new contributors got registered by the PFA.

This analysis was duly conducted by Nairalytics, the research arm of Nairametrics, which compiled the collected data from the National Pensions Commission (PenCom).

In the same vein, the pension fund asset under management recorded a massive increase of N12.31 trillion in the last year, improving to N13.42 trillion when compiled during the December 2021 examination. Duly noted was a 9.1% hike as opposed to what was gotten in 2020.

What spiked the increase?

Well, it won’t be off to mention that the major rise is due to the considerable increase in the contributions made under the RSA Fund II categories which are paramount for every contributor within and below the age of 49.

 

We can as well emphasize that the RSA Fund II category accrued N522.48 billion in 2021 to gain such as N5.88 trillion before the end of 2021. This would amount to having a funded category to gain as much as 43.8% of the entire contributory program.

 

Also, let’s not forget that the RSA fund III is a conservative fund that allows only invested funds of about 5% to 20% in variable income instruments, which increase it by N420.38 billion to total N3.54 trillion, accounting for 26.4% of the cumulative fund assets under administration.

 

The National Pension Commission presented two new funds in the survey year for both active and retiree personnel, detailing Fund VI active and Fund VI retiree. The two of which have a complete commitment of N221.2 million and N14.45 billion separately.

 

Then again, commitments from CPFAs, that is pension schemes in the private area existing before the presentation of the Contributory Pension Scheme (CPS) in June 2004 declined by N34.28 billion.

In Conclusion

 

It’s worth noting that the Nigerian Pension industry is waxing stronger every day, with extra funds being made to cater to various scopes of contributors given their risk level. The business has additionally grown to be more competitive after PenCom opened the exchange window, which has seen more than 35,000 contributors switch PFAs from January and September 2021.

Nonetheless, there is a need to do more to catch more Nigerians into the pension fund crate to assist with sealing the fate of working people when they retire and can as of now not go through the issue of working.

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