The Best Pension Companies In Nigeria

Everybody intends to retire someday. As a result, individuals must plan ahead of time and entrust their pension money to reputable institutions. Amazingly, there are so many options to consider before making a final decision. Basically, this post looks at some of the top ten greatest pension companies in Nigeria right now.

What is a pension?

A pension is a consistent income received by a retiree in order to meet his or her requirements and desires in old age. Everyone reaches a moment in their lives when they are unable to work anymore, and a pension ensures that they are able to survive during that time. Have you ever wondered which pension firms are the most trustworthy for providing a secure retirement? We have developed a list specifically for you. You may learn more about the contributing pension program here.

Top 10 best pension companies in Nigeria

Based on their yearly performance, below are the top 10 pension companies in Nigeria:

1. AXA Mansard Pension Limited

Axa Mansard, located on Victoria Island in Lagos, has been in operation since 2006 and has developed to become one of Nigeria’s largest pension companies. The company’s numerous pension packages are strategically tailored to the best interests of its customers based on their business or employment type.

Self-employed workers can also profit by contributing to their retirement through the Micro Pension Plan (MPP). The MPP is adaptable, convenient, and customer-oriented.

2. Arm pension manager limited

Arm Pensions is a division of the Asset and Resource Management Company group, a market leader with a strong reputation for investment and pension fund management.

The organization also has a solid reputation for being one of the first pension administrators to be licensed by the National Pension Commission (PenCom).

The company delivers free lectures to pensioners to educate them on life after retirement. Another advantage of hiring Arms pension managers is that they provide pension benefits to their pensioners in the event of a temporary loss or layoff from employment.

3. Oak pension

Oak Pension, founded in 2004, is another major pension fund manager in Nigeria. The organization is known for its capacity to invest pension funds in order to maximize returns for contributors. They now have a return rate of 13.47 percent.

Their pension packages include:

• Retirement savings account: This is a mini-retirement plan account opened for the purpose of saving towards retirement.
• Benefit administrations and payment: This involves managing and giving benefits to RSA holders.
• Voluntary contributions: These are extra contributions you can donate as an RSA holder before retirement which they either add to your balance at retirement or handle separately.
• Defined Benefit scheme Management: For the defined benefit scheme, the amount you receive as pension depends on the number of years you worked for and the total salary you earned.
• Retirement planning and Advisory services: This involves giving free and genuine advice to their customers.

4. Leadway pensure

Leadway Pensure, founded in 2004, has its headquarters at 121/123 Funsho Williams Avenue Surulere, Lagos. The organization is well-known for providing a wider choice of flexible and customer-friendly post-retirement support services to its clients.

Leadway also has a well-developed methodology to assist in tracking the overall performance of various investment securities. Leadway guarantees both long-term fund preservation and maximum potential profits.

5. Crusaders Sterling Pension Limited

Crusader Sterling has been a household brand since its launch in 2004. The company has previously received an award for being Nigeria’s best-performing pension administrator. The company is well-known for its exceptional customer service, which provides consumers with practical solutions to secure their assets.

6. NLPC Pension Fund Administrator Limited

NLCP Pension, based in Anthony, Lagos State, exists solely to provide workers with a pleasant future by assuring a consistent source of income in retirement through competent management of their allotted pension fund.

Furthermore, the company is well-known for its Innovative workforce, superior service delivery, corporate governance, and technology-enabled pension fund administration service.

7. VGP Pension Limited

The VGP pension was previously known as the FUG pension. Their features include a retirement savings account (RSA), additional voluntary contributions (AVC), portfolio management, benefit administration, and pension advice services.

The company is well-known for its great service delivery and exceptional customer service.

8. Sigma Pension

Sigma Pension was licensed as a pension fund administrator in 2004, and it commenced operations in 2005. They have developed considerably over time. As of December 2020, they oversaw the retirement accounts of about 780,000 contributors.

They have also handed out benefits totaling more than 28 billion Naira to over 11,000 clients. Without a doubt, this organization is one of the best pension fund companies in Nigeria.

9. Fidelity Pension Managers Limited

Previously known as Alliance Management Limited, Fidelity Pension aims to provide a secure and profitable pension solution for a better retirement. The company’s paid-up share capital is 2 billion Naira, which meets the minimum share capital requirement for pension fund administrators of 1 billion Naira.

10. Pension Alliance Limited (PAL pension)

Pal Pension is jointly owned by African Alliance Insurance Company Limited and First Securities Discount House (FSDH) Merchant Bank. The organization has been in operation since 2005 and has over 13 years of professional experience handling pension funds.

Their services focused primarily on the management and payment of retirement funds for Nigerian employees under the pension reform act passed in 2004. Pal pension now has around 450,000 clients.

Frequently Asked Questions

What is PFA in Pension?

PFA stands for Pension Fund Administrator. A pension fund administrator is a corporation that manages and administers contributory pension funds in compliance with the regulations of the Nigerian pension board (PENCOM).

Their primary goal is to grow and protect pension assets for ultimate payment to retirees in Nigeria.

How Long Does it Take PENCOM to Approve Payment?

The time it takes for the National Pension Commission (PenCom) in Nigeria to approve payments varies depending on the situation. It is primarily determined by a number of factors, including the sort of payment made, the completeness of the documentation presented, and PenCom’s internal administrative processes.

Furthermore, for payments such as retirement benefits, PenCom often takes a few weeks to a couple of months to approve the distribution of funds, assuming all necessary documentation and procedures are in place.

What is a defined Benefit Scheme?

A defined benefit scheme is a form of pension plan in which an employer receives a consistent income amount upon retirement. The employer promises employees a specific retirement payout based on an established formula. The formula is:

• Employee’s salary history
• Years of service, and
• A predetermined accrual rate.

The employer bears the financial burden and assumes the investment risk. However, due to the risk they bear, many companies have shifted away from this type of pension plan and toward defined contribution plans in which the employee carries all risks.

Which is better Annuity or Program Withdrawal?

The better option between this two depends on:

• Individuals
• Circumstances
• Financial goal
• Risk tolerance of each individual
• Need for a guaranteed income and
• Desire for flexibility.

An annuity provides a regular income and most times doesn’t change even with inflation and changes in the economy.

Programmed withdrawal permits retirees to withdraw a portion of their pension savings periodical.leaving the restin their investment account.

The investment performance and market conditions affect the pay, meaning a higher income if investment return is high but also comes with higher risk if the investment return is low.

Conclusion

To make the most of your retirement, you should entrust your pension money to a reliable administrator. Hopefully, the list above will help you make the proper selection, resulting in a joyful retirement.

However, if you are not happy with the list above or are looking for alternative pension companies, you can read here about FCMB Pensions, AIICO Pensions, First Guarantee Pensions.

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