If you already have a Retirement Savings Account (RSA), you are on the right track toward securing your future.
However, with a new initiative by the National Pension Commission (PenCom), you now have greater flexibility and control over how you save for the future. This initiative is the Personal Pension Plan (PPP).
What is the Personal Pension Plan?
The Personal Pension Plan is a voluntary pension option that allows you to make additional contributions outside your regular RSA contributions.
While your RSA is funded through your employer and your salary, the PPP allows you to contribute personally, at your own pace, and based on your financial capacity.
How does it work?
Contributions made under the PPP are divided into two parts:
- Contingent Portion: This part can be accessed when needed, subject to the regulatory guidelines.
- Retirement Portion: This part is preserved strictly for your retirement.
This structure is designed to give you a balance between financial flexibility today and security for the future.
How is this different from your RSA?
Your RSA remains your primary pension account, funded monthly through your employer.
The PPP, on the other hand:
- Is fully voluntary
- Allows you to contribute any amount, at any time
- Gives you controlled access to part of your contributions
As a working professional, your current pension contributions may not fully cover the lifestyle you want at retirement.
The Personal Pension Plan gives you an opportunity to:
- Increase your retirement savings
- Contribute from bonuses or extra income
- Maintain some level of access to your funds if needed
- Build a more comfortable financial future
How can you take advantage of it?
You can start using the PPP in simple ways:
- Set aside a small percentage of your monthly income
- Contribute from your bonuses or salary increases
- Use it as a structured way to save consistently
As an existing CrusaderSterling Pensions Contributor, you can easily get started with the Personal Pension Plan. Send an email to info@crusaderpensions.com, and we will guide you through the process.
