5 Retirement Questions to Ask Your Employer

Retirement might not always be at the top of your mind, especially if you’re laser-focused on climbing the career ladder or building your brand. However, preparing for life after you retire is as important as the work you’re doing now.

In Nigeria, financial literacy around pensions is still developing, and employer compliance can sometimes be inconsistent. This is why you must be proactive with your pensions and ask your boss the right questions. After all, it is your future that’s at stake here.

In this article, we have highlighted five crucial retirement questions you should confidently discuss with your employer.

1. Am I enrolled in the Contributory Pension Scheme (CPS)?

This is the foundation of formal retirement planning in Nigeria. The Contributory Pension Scheme is overseen by the National Pension Commission (PenCom) and is mandatory for all organizations with fifteen or more employees. 

Under this scheme, your employer is expected to contribute ten percent of your monthly salary, while you contribute eight percent. These contributions are deposited monthly into your Retirement Savings Account (RSA) managed by a Pension Fund Administrator (PFA).

If your contributions aren’t being remitted properly or consistently, you can report them to PenCom. Ask your HR department or payroll officer for proof of registration and remittance—it’s your right to know.

2. Which PFA manages my RSA, and can I change it?

Once you’re sure your pension is being handled correctly, the next step is knowing who manages it. Your Pension Fund Administrator (PFA) would be responsible for investing your savings and growing your retirement funds over time. Not all PFAs perform equally, and customer service levels can vary. This is why you must choose wisely.

PenCom has made it possible to switch PFAs once a year through a transfer window if you’re not satisfied with the performance or service of your current PFA. So, find out who’s managing your account and monitor how well they’re doing. You have more control than you might think.

3. How can I monitor my pension contributions?

A big part of being financially empowered is staying informed. Ideally, your PFA should send you regular updates, either monthly or quarterly, with your RSA balance, contribution history, and investment returns. Most PFAs now offer mobile apps and web portals, making it easy to track your pension in real-time.

If you’re not getting any communication, it could mean your contact information is outdated or that your employer isn’t remitting as expected. Either way, it’s something to investigate. Staying connected to your pension activity keeps you in control and helps you avoid surprises.

4. Does the company offer any additional retirement or exit benefits?

Beyond the statutory pension scheme, some organizations offer extra retirement perks. These might include a gratuity after a certain number of years, voluntary top-ups to your RSA, or group life insurance benefits. While life insurance is mandatory under Nigerian labor law, how it’s implemented varies by employer.

It’s worth finding out what applies in your case. Additional benefits like these can significantly boost your post-retirement income or provide much-needed support to your family in the event of the unexpected. Ask what’s available, how it’s structured, and whether you need to meet any service milestones to qualify.

5. What happens to my pension if I resign, change jobs, or relocate?

Career mobility is a reality for many professionals today—switch industries, go freelance, move abroad, or even hit milestones. What’s important, as you do all of these, is knowing what happens to your pension at all times. 

The good news is that your RSA is portable and will stay with you regardless of your job. All you have to do is inform your new employer of your existing PFA, and your contributions continue without interruption.

If you become self-employed, you can make voluntary contributions. And if you decide to relocate permanently, PenCom provides guidelines for accessing your funds. Whatever the case, your pension doesn’t disappear when you leave an organization, but you need to take the right steps to keep it active.

Conclusion

Planning for retirement in Nigeria doesn’t have to be overwhelming, but it does require clarity, consistency, and trusting the right administrator. These five questions are a great starting point to ensure your employer is supporting your long-term financial well-being.

If you need more insights and guidance, let Oak Pensions be your pensions partner. Oak Pensions is Nigeria’s trusted fund administrator with nearly two decades of expertise, helping Nigerians live their dream retirement. 

Don’t wait until retirement is around the corner to start thinking about it. Contact the Oak Pensions team at info@oakpensions.com to ask now, stay informed, and make the most of the systems already in place. Your future self will be glad you did.