HomeBUSINESSPension Regulator Urges Employees to Avoid Opening Multiple Retirement Accounts

Pension Regulator Urges Employees to Avoid Opening Multiple Retirement Accounts

The National Pension Commission has sounded a vital warning to private sector employees: resist the temptation to open multiple retirement savings accounts. This caution comes as a beacon of financial wisdom, as the Commission emphasizes the potential pitfalls of such a choice at the twilight of one’s career.

Aisha Dahir-Umar, the Director General of the National Pension Commission, delivered this message during a one-day interactive session in Port Harcourt, the capital of Rivers State. Her words resonated with a sense of urgency, reminding private sector workers of their fundamental responsibilities in adhering to the Pension Reform Act of 2014.

With conviction, she asserted that pension matters are deeply personal and that employees hold the right to choose their pension administrators, firmly stating that employers have the authority to impose a pension administrator on their workforce. “It is your right,” she emphasized, urging employees to report any undue pressure from employers to the National Pension Commission.

The Director General warned against the perils of opening more than one retirement savings account, highlighting the potential complexities that could arise when it’s time to access retirement savings.

Stressing the importance of a single, well-managed account, she underscored the necessity of ensuring that every employee can seamlessly access their retirement savings when the time arrives.

Dahir-Umar revealed that the National Pension Commission is overseeing N16.76 trillion in pension assets, serving over 10 million Retirement Savings Account holders under the Contributory Pension Scheme. This stage reflects the gravity of the matter at hand.

In a parallel voice, the Director General of the National Employers Consultative Association, Mr. Adewale-Smart Oyerinde, added weight to the conversation. 

NECA, representing 4,000 labor employers across Nigeria, highlighted the importance of educating both employers and employees about this essential aspect of financial planning. They affirmed their long-standing support for the scheme, advocating for a secure future where employees can preserve a portion of their earnings for retirement.

In this harmony of concern for the financial well-being of private sector employees, the message is clear: heed the Commission’s counsel, secure your financial future, and ensure that you’re not caught in a web of multiple retirement savings accounts. Your retirement comfort depends on it.

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