For decades, a growing number of Nigerians have trusted their financial future in the hands of pension fund administrators (PFAs), and in this article, we will be listing the top 7 pension companies in Nigeria, serving as custodians of retirement funds.
With this list, hopefully, you – if you are in the market for a PFA – will make an informed decision and choose a pension plan that satisfies your need.
Pension plans are important and sometimes made compulsory, for employees of organisations, deducting a certain amount of money from their wages on a monthly basis, channelled towards retirement.
Nigeria has a total of 22 PFAs, and data contained in the Pension Asset Summary Report stated that there were over 9 million Retirement Savings Accounts (RSAs) in the country, rising by 189,765 accounts, representing a 2.01 percent increase.
Pension in Nigeria remains a hard product to sell, seeing as most Nigerians are not properly educated on the subject of pension, with a 12 percent penetration.
Added with the inadequate amount of pension education available to Nigerians, especially those in the informal economy who make up most of the workforce in Nigeria, there’s also the factor of low earnings, discouraging many from giving audience to the idea of a pension plan.
According to a report by the National Pension Commission (PenCom), the age group with the highest number of RSA registrations are between 30-39 years with 3,050,342, representing 36.27 percent.
The age group with the least RSA registrations are those above 65 years with 224,258, representing 2.67 percent.
The Federal Government introduced the Contributory Pension Scheme (CPS) in 2004 to aid the easy onboarding of Nigerians on pension plans for a secure retirement, with stipulations that make the scheme compulsory.
Now, let us identify, in no order, the top 7 Pension Fund Administrators in Nigeria.
Stanbic IBTC Pension Managers
One of the forerunners of PFAs in Nigeria, Stanbic IBTC Pension Managers, was established in 2004 and is a subsidiary of Stanbic IBTC Holdings Plc. It provides pension services to employees in both the private and public sectors.
It has continued to prop itself as a trusted name in the pension field, with over 1.8 million pension subscribers, the largest in the country.
The establishment of Sigma Pensions came a year after the creation of the Contributory Pension Scheme (PCS) in 2004, and it boasts of over 780,000 pension contributors and prides itself as one of Nigeria’s leading pension fund administrators.
Formerly known as AXA Mansard Pensions Limited and established in 2006, Tangerine Pensions is one of Nigeria’s leading Pension Fund Administrators and Asset Management Companies.
It offers an assortment of pension services including pension advisory services, pension fund management.
CrusaderSterling Pensions Limited
The pension firm was established in 2004 and is owned by a consortium of companies inlcuding Custodian Trustees Limited, Custodian Investment Plc., Sterling Asset Management Ltd., Ideal Insurance Brokers Limited, and WSTC Financial Services Limited.
The PFA offers services like Retirement Savings Accounts (RSAs), Gratuity and Legacy Funds, among others, with an authorised share capital of over N2 billion.
Fidelity Pension Managers Limited
Formerly known as Alliance Management limited, until its name was changed in 2007 to its current name, the pension manager is fully licenced by the National Pension Commission (PenCom).
It has a paid-up share capital of over N2 billion and provides a bouquet of pension services.
Birthed by the merging of two firms, institutions, African Alliance Insurance Company Limited and FSDH Merchant Bank (formerly First Securities Discount House Limited (FSDH)), the pension firm has more than 450,000 clients over a 13-year period, with a solid experience in the matters of pension.
AIICO Pension Managers Limited
One of the pioneers of pension administrators in the country, AIICO – incorporated in 2005 – has an array of services in the areas of pension administration, banking, risk management, asset management, and capital market.
If you want to be guided through the maze of the pension world to help in your decision-making on how to choose a pension fund administrator (PFA) and the best pension option best suited to you, join BizWatch Nigeria in the third installment of its webinar series with the theme, ‘Reimagining Retirement For Secured Future.’
The webinar is slated to hold on Wednesday 29 September 2021 at 11 am.
To join, click here.