Secure Your Retirement with a Savings Account

What is a Retirement Savings Account?

A Retirement Savings Account (RSA) is an account opened by an employee with a PFA of his/her choice into which all pension contributions and returns on investment are remitted. It is also from the RSA that retirement and death benefits are paid.

The Retirement Savings Account was initiated by the Federal Government under the Pensions Reform Act 2004 and is used to set aside money towards an individual’s retirement. The pension Reform Act 2014 requires the employer and employee to contribute a minimum total of 18% of the employee’s monthly emoluments (basic salary, housing and transport) to a Retirement Savings Account (RSA) which will be managed by a private sector Pension Fund Administrator (PFA).

Types of Retirement Savings Account

1. Contributory Pension Scheme
2. Voluntary pension scheme
3. The Micro Pension Scheme
4. Cross border pension scheme
5. Retirement plan
6. Institutional pension fund management

Benefits of Having an RSA

1. A retirement plan enables you to save enough money to preserve your current lifestyle after you retire.
2. Contributions made by employees to their retirement accounts are often made on a pre-tax basis, which lowers their taxable income for the year.
3. Money contributed to retirement accounts and any earnings from investments grow without being taxed until the funds are withdrawn.
4. Due to the power of compound interest, even small, regular contributions to a retirement account can grow substantially over the years, making it easier for employees to build significant retirement savings.
5. Employees can move retirement savings from one pension fund administrator to the another without incurring tax penalties, maintaining continuity in their retirement savings even if they change jobs.
6. Consistent contributions to a retirement plan, along with the benefits of compound growth and tax advantages, help employees build a secure financial foundation for their retirement years, reducing financial stress and uncertainty.

Who is Eligible to open a Retirement Savings Account?

Every employer is mandated by law to open a retirement savings account for their employees as long as they are three or more. summarily, every employee is entitled to a retirement savings account.

How to open a RSA with Leadway Pensure

1. Complete our RSA registration online/physical form
2. Submit to our office to get a Personal Identification Number (PIN). 
3. Your PIN is sent to you via SMS & a welcome certificate delivered to your E-mail box or Physical address.  
4. You can now send a copy of the registration certificate or PIN to your employer for monthly contributions. 
5. Get ready to receive SMS notifications every time your account is credited by your employer.