More Nigerians Transfer Pension Savings Into Mortgage

 

…As Pension Fund Assets Rise 4.4%

Harboursandport.com: Lagos – January 29, 2025: More Nigerians  are relying on their pension savings to acquire residential mortgage as the number of Retirement Savings Account, RSA, holders that transferred part of their pension savings into residential mortgage increased by 65.03 per cent quarter on quarter, QoQ, to 3,804 in the third quarter of 2024, Q3’24.

Omolara Oloworaran, DG, PenCom

This form of transfers recorded 2,305 in the second quarter of 2024, Q2’24.

According to the Pension Industry Performance Dashboard released by the National Pension Commission, PenCom, yesterday, the value of funds transferred in Q3’24 also increased by 81.2 per cent to N32.62 billion from N18 billion recorded in Q2’24.

Equity contribution for residential mortgage is the portion of funds that a Retirement Savings Account (RSA) holder can apply from their RSA balance towards the payment required to secure a residential mortgage. RSA holders are permitted to utilize a maximum of 25 per cent of their RSA balance for this purpose.

Meanwhile, total pension fund assets increased by 4.4 per cent to N21.38 trillion in Q3’24 from N20.48 trillion recorded in Q2’24.

Also total RSA registrations increased by 1.4 per cent to 10.53 million in Q3’24 from 10.38 million recorded in Q2’23.

The report stated: “By Q3 2024, there were 10,536,088 Registered Retirement Savings Accounts (RSAs), representing a growing adoption of the pension system. Notable highlights include 118,339 new RSA registrations in the year-to-date period for 2024, reflecting consistent awareness and inclusion efforts. Over the past five years, RSA registration increased by 13.93%, from 9,215,788 in Q4’2020 to 10,499,358 in Q3 2024. Of the registered members, 61% were male and 38% were female during this period.

“Cumulative contributions since the inception of the Contributory Pension Scheme (CPS) reached N10.97 trillion as at Q3,2024, with the public sector contributing N5.71 trillion while the private sector contributed N5.25 trillion.

“Pension Contribution has achieved significant growth in the past five years. The public sector contributions rose from N3.43 trillion to ₦5.71 trillion, while private sector increased from N3.27 trillion to N 5.25 trillion.

“The total Micro Pension Registration count from inception to Q3 2024 stood at 164,031. Specifically, the number of informal sector workers with funded RSAs was 12,241. From 2020 to Q3 2024, the number of funded RSA registration increased by 5,971. The total amount saved in the RSAs of Micro Pension Participants was N967,194,762.23 as of Q3 2024, which represented a growth of N878,065,827.85 from the 2020 figure of N89,128,934.38.