Millions of Nigerians now have a Retirement Savings Account (RSA). Yet many still make decisions about their pension based on things they heard at the office, in the family WhatsApp group, or from a friend who “knows about these things.”
Some of these ideas are outdated. Others were never true. Believing them can cost you money, delay your benefits, or stop you from using options that already exist for you. Here are the most common pension myths we hear, and what the rules actually say.
“My pension belongs to my employer.”
Your RSA is opened in your name and linked to your personal PIN. Your employer’s job is to deduct your share from your salary, add its own share, and send both to your RSA every month. Under the Pension Reform Act 2014, the minimum is 18% of your monthly emoluments: 10% from your employer and 8% from you.
Your Pension Fund Administrator (PFA) invests the money, while a separate Pension Fund Custodian (PFC) holds the assets. Neither your employer nor your PFA can spend your savings.
“If I change jobs, I lose my pension.”
Your RSA moves with you for life. You keep the same PIN no matter how many times you change employers. When you start a new job, give your new employer your PIN and PFA details so they can continue remitting into the same account.
Do not open a second RSA. Having more than one account causes delays and problems when you finally need your money.
“I can’t touch a kobo of my pension until I retire.”
Your RSA is meant for retirement, and that should remain its main purpose. But the law and PenCom guidelines allow some access before retirement in specific situations. The table below sums them up.
| Situation | What you can access | Key condition |
|---|---|---|
| Temporary loss of job | Up to 25% of your RSA balance | You are below 50 and have not found new employment after four months |
| Buying your first home | Up to 25% of your mandatory RSA balance as equity contribution for a residential mortgage | Paid through a PenCom approved mortgage lender |
| Voluntary contributions | The contingent portion of your voluntary savings | Contributions must have stayed in your RSA for at least one year |
“Pensions are only for civil servants and people with office jobs.”
Traders, artisans, farmers, drivers, freelancers and small business owners can all save for retirement through the Micro Pension Plan. You open an RSA, contribute whatever amount you can, as often as your income allows, and your savings are invested just like those of a salaried worker.
Private companies with three or more employees are also required by law to run a pension scheme for their staff.
“Once I choose a PFA, I am stuck with them forever.”
PenCom runs an RSA Transfer Window that lets you move your account from one PFA to another, once a year. Your PIN and your savings move with you. Before you can transfer, your data recapture must be complete.
“My pension money is just sitting in an account doing nothing.”
Your PFA invests your contributions in assets permitted by PenCom, such as government securities, corporate bonds, money market instruments and equities. Returns are credited to your RSA, which is why your balance can grow beyond the total amount you and your employer paid in.
Your savings sit in an RSA Fund that matches your age and stage of life, with younger contributors typically placed in funds that aim for more growth and those close to retirement in more conservative funds.
“Updating my records is not urgent. I will do it when I retire.”
This is one of the most costly myths. If you joined the scheme on or before 1 July 2019 and have not done your data recapture, you will be unable to access retirement benefits, apply for the 25% withdrawal after job loss, use your RSA for a mortgage, or transfer to another PFA.
Since February 2026, PenCom’s PENCAP self service platform has made it possible to complete your recapture online. You will need your National Identification Number (NIN).
“If I die before retirement, my family loses my pension.”
Your RSA balance is paid to the beneficiaries named in your will or, where there is no will, to your next of kin in line with the law. This is why keeping your next of kin and beneficiary details current matters. Outdated records are one of the most common reasons death benefit claims take longer than they should.
Before you believe the next pension story
- Check your statement regularly. Confirm your employer is remitting every month and that the amounts match your pay.
- Complete your data recapture. Without it, many of the options described above stay closed to you.
- Keep your details current. Update your phone number, email, address and next of kin whenever they change.
- Ask your PFA directly. When in doubt, get the answer from the people who manage your account, not from hearsay.
This article is for general information only. Pension rules are set by the National Pension Commission and may be reviewed from time to time. Contact your PFA for guidance on your personal account.