Investments on pension funds yield 16.42% in 2017 – Data


Investments with accumulated funds in active Retirement Savings Accounts (RSAs) yielded an average of 16.42 per cent in 2017.
Data exclusively sourced from the National Pension Commission (PenCom) showed that the 2017 annualized average rate of return for retiree fund was 15.39 per cent.
Comparatively, the weighted average return on investment on the RSA ‘Active’ Fund in 2017 was higher than the 11.59 per cent recorded at the end of 2016 and also higher than the 8.65 per cent recorded in 2015.
Daily Trust’s analysis shows that in 2017, the average inflation rate in Nigeria amounted to about 16.5 per cent and considering the economic downturn in the economy within the same year, Pension Fund Administrators (PFAs) had managed to keep the average interests on pension fund investments about the same average inflation rate within the same year.
It is worth noting that the average return on investment of some PFAs performed more than the average inflation rate within the same year while some PFAs performed below.
The implication is that RSA holders in strong PFAs that performed above inflation rate got more value on their retirement savings than those in PFAs that performed below inflation rate.
Meanwhile, federal government paid retirees N10.38 billion in October as accrued right, bringing the total payments on accrued rights from 2007 to September 2018 to N679.69 billion.
Data from PenCom showed that from inception of the contributory pension to date, the federal government had paid the accrued rights of 143,637 retired workers.
Daily Trust learnt exclusively that the N10.38 billion paid as accrued right was received in July 2018 budget release on and used to pay N6.06 billion to 1,210 ex-workers who retired in August 2017.
N591.69 million was paid as deceased benefits to 270 beneficiaries under batch 63 while N317.63 million was also paid as deceased benefits to 142 beneficiaries under batch 64.
N3.41 billion was also paid to 666 retirees under batch 38 for those who had retired but missed out on previous years’ enrolment.

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