Save for Your Future in US dollars($)
The new Foreign Currency Pension (FCY) by the National Pension Commission (PenCom) allows Nigerians earning in dollars at home and abroad, to save and withdraw their pensions in dollars.
What is the Foreign Currency Pension (FCY)?
The Foreign Currency Pension (FCY) allows individuals to save for retirement in foreign currency, primarily in US Dollars. It expands the Contributory Pension Scheme (CPS) to include Nigerians in the diaspora, expatriates, and individuals earning in foreign currencies.
The FCY pension account operates alongside the Retirement Savings Account (RSA) but allows contributors to build a retirement nest egg that is not solely dependent on the Naira, providing greater financial security in retirement.
Features
- Contributions can be made in foreign currency (US dollars).
- Contributors can choose to receive retirement benefits in foreign currency or convert to Naira at retirement or withdrawal
- Investments are guided by PenCom regulations, and managed by licensed Pension Fund Administrators (PFAs).
- Secure custodial arrangements with regulated pension custodians.
Benefits
- Currency protection: Shields retirement savings from local currency volatility.
- Flexibility: Contributors can decide how they receive their benefits at retirement.
- Global investment exposure: Opportunity for portfolio diversification and potential growth.
- Diaspora inclusion: Enables Nigerians abroad to participate in the Contributory Pension Scheme (CPS)
- Long-term wealth preservation: Helps maintain purchasing power in retirement.
Who is Eligible?
- Nigerians living and working abroad.
- Nigerians and expatriates, resident in Nigeria earning income in foreign currency (US dollars).
Requirements
- Domiciliary account for resident Nigerians
- Non-Resident Nigerian Ordinary account (for Nigerians abroad)
Frequently Asked Questions (FAQs):
- Contributions can be made in foreign currency (US dollars).
- Contributors can choose to receive retirement benefits in foreign currency or convert to Naira at retirement or withdrawal
- Investments are guided by PenCom regulations, and managed by licensed Pension Fund Administrators (PFAs).
- Secure custodial arrangements with regulated pension custodians.
Benefits
- Currency protection: Shields retirement savings from local currency volatility.
- Flexibility: Contributors can decide how they receive their benefits at retirement.
- Global investment exposure: Opportunity for portfolio diversification and potential growth.
- Diaspora inclusion: Enables Nigerians abroad to participate in the Contributory Pension Scheme (CPS)
- Long-term wealth preservation: Helps maintain purchasing power in retirement.
Who is Eligible?
- Nigerians living and working abroad.
- Nigerians and expatriates, resident in Nigeria earning income in foreign currency (US dollars).
Requirements
- Domiciliary account for resident Nigerians
- Non-Resident Nigerian Ordinary account (for Nigerians abroad)
