Financial Guidance for Retirees

Retirement planning is a very important aspect of retirement that people tend to forget and often comes with dire consequences. Listed below are action points that can assist.

Sign up for Additional Voluntary Contribution (AVC)

AVC is a voluntary amount saved by contributors.  AVC gives the contributor freedom to decide how much to save periodically (monthly/quarterly) based on his income. Contribution into AVC can only be made through the employer.
Guidelines governing withdrawals from Additional Voluntary Contributions are:

▣   Fifty (50%) of AVC contributions made by mandatory RSA contributions shall be available for withdrawal once in two years. However, tax on this category of AVC withdrawals will be paid only on investment income earned.

▣  Subsequently, withdrawal shall be on incremental contributions from the date of last withdrawal

▣   The outstanding balance of Fifty (50%) shall be used to enhance benefits at retirement.

▣    Foreign contributors shall be eligible to withdraw all the Voluntary Contributions in the RSA at the expiration of the contract of employment or relocation to their home country. The tax treatment for this category shall be based on both investment income and principal amount when withdrawal is less than five years from the date the voluntary contributions was made.


Choose Program Withdrawal at retirement

Programmed Withdrawal is a product offered by the Pension Fund Administrators for periodic payments (monthly/quarterly) to a retiree. It is a structured periodic payment based on the peculiarities of the retiree, the Retirement Savings Account balance is spread over the expected life span of the retiree while the funds remain in the custody and are managed by the Pension Fund Administrator. The benefits of programmed withdrawal over annuity include:

▣ Programmed Withdrawal serves as social security for retirees while annuity does not qualify as social security.

▣ Retirement benefits is in individual RSA account while Retirement benefits under annuity is in a pool of fund.

▣ The Retiree is guaranteed payment of monthly pension even when his/her account is depleted

▣ Retiree monthly pension is reviewed for enhancement from time to time under programmed withdrawal by the National Pension Commission, under annuity there is usually no incremental review of payment assured for life.

▣ The investment income earned per contributor is credited into the RSA balance of the retiree while the profit on annuity fund belongs to the insurance company.

▣ Annuity is guaranteed for only 10 years. If the Retiree dies after the guarantee period, beneficiaries are not entitled to the deceased balance in the Annuity pool. However, Programmed Withdrawal benefits the retirees as well as the next of kin, because the outstanding account The historical volatility and downside risk of each investment balance will be paid to the beneficiary upon retiree’s death.

Create a realistic budget

Most retirees will be on a fixed income, so it is important that an expense budget is created based on fixed income.

Evaluate your health care

Your choice of the right health management plan is extremely important. Consider discussing your options with an expert who can help navigate through these issues to make the appropriate choice. Routine medical check-ups with health provider is also vital.

Don’t spend the lump sum at retirement on having fun

Most people collect their lump sum at retirement to have fun. Perhaps to travel or buy a boat. After all, as you get older, you may be inclined to stay at home and won’t get a chance to spend the money on something fun. But the question is “what if you live to age 90?” You need to keep some resources in reserve so you don’t become a burden to your family.

Pay off debt

If possible, pay off all debts and do not create new ones. Bearing in mind that most people will be on a fixed income monthly.




Kenneth Ezugwu

My account officer communicates with me regularly through emails and so far it has been an effective means for me. CrusaderSterling Pensions maintains good relationship… Read more »

Odukoya Olusoji Olumide

Institute Of Chartered Accountants of Nigeria (ICAN)
How I wish another bulk payment of 25% could be made and the monthly pensions reduced further. I wish the company the best in its future endeavours and have no hesitation recommending the company to prospective pensioners. You need to PORT to CrusaderSteerling.

Prof. Alaba Isaac Olugboyega

University of Lagos
CrusaderSterling Pensions limited pays my monthly pensions regularly between the 19th and 21st of every month. Also, my statement of account is sent on request promptly. I also appreciate the annual retiree forums which are held annually to enhance interaction.

Aina Omotayo Aremu

Aina Omotayo Aremu

Investment Department
Proud to be one of the pioneer staff in the organization. I joined at the commencement of business with my first engagement in the Internal Control and Audit.
It has so far been a worthwhile experience through to my present engagement in the Investment Management at the Research Desk.

Ndikanwu Chibuzor

Compliance Department
My Career with CrusaderSterling Pensions has availed me the opportunity to learn a lot about the Pensions and Financial industry; I have also been presented with an opportunity to develop myself through constant learning and development programs.

Alade Olubunmi

Marketing Department
CrusaderSterling Pensions is Professional in their business dealings and have good corporate governance and values. It is a place where Staff are encouraged to take up responsibilities and take ownership of the business in a bid to grow with the Company.

Adebayo Fagbola

Internal Control Department
My Career with CrusaderSterling Pensions Limited began on the 16th of March, 2015. Having previously worked within the pensions industry for eighteen months, I felt it was time to further develop myself with an industry leader; CrusaderSterling Pensions Limited was my first choice.

Adeoye Adewale

Contributions Department
I am fortunate to be one on the pioneering staff of CrusaderSterling Pensions Limited. The atmosphere and environment here was far above my expectations. Aside from learning new skills and developing myself; members of my team are very kind and friendly with a positive mentality.