One of the best reforms in Nigeria’s pension industry was the introduction of the multi-fund structure in 2018. Designed to align retirement savings with contributors’ age, risk appetite, and faith-based preferences, it gives individuals more control over how their pensions are managed. What does this structure entail, and how can you make it work for you?
Breaking Down the Funds: Fund I to VI
Here’s a quick overview of all six RSA funds under the structure:
- Fund I – Growth-Oriented (High Risk, High Return)
- Fund II – Default for Contributors Under 49
- Fund III – Default for Contributors 50 and Above
- Fund IV – Retirees Fund (Very Low Risk)
- Fund V – Micro Pension Fund
- Fund VI – Non-Interest Fund (Faith-Based)
Benefits of The Multi fund Structure
- Age-Appropriate Investing: Younger contributors can grow their savings aggressively, while older contributors can focus on preserving wealth.
- Choice and Flexibility: You can switch between funds once a year without penalties.
- Faith-Based Inclusivity: Fund VI allows contributors to grow their pensions in line with their beliefs.
What You Should Do Today
- Check your fund using the Pensure mobile app
- Make an informed switch: If Fund I, V, or VI better aligns with your goals or beliefs, you can switch to your preferred fund type.
Conclusion
The multi-fund structure puts the power of choice in your hands. Whether you’re young and ambitious, approaching retirement, self-employed, or seeking ethical investing, there’s a fund for you. Don’t leave your future to chance-choose a fund that matches your journey.
To Switch funds,
- Download the Pensure Mobile App from Play store or Apple store and log in.
- Click the three dots by the left-hand side of the dashboard.
- Then pick ‘Multi fund switch’ and follow the next steps.
To chat with LISA about all pension-related matters, send Help to 0701 8000 800 today via WhatsApp or Telegram.