Why should you track your pension savings? If you currently keep an eye on your estates then your pensions shouldn't be any different.
Beyond the peace of mind that comes with knowing your money is secure somewhere, tracking your pensions ensures you stay on course to meet your retirement goal.
If done right, tracking would help you identify gaps, adjust contributions, and make informed decisions that align with your current financial reality.
In this article, we will explore multiple ways that you can effectively monitor your retirement savings and stay on top of your retirement.
How to Track Your Pension Savings
Regularly Review Your RSA Statements
Your Pension Fund Administrator (PFA) provides periodic statements, providing a snapshot of your existing account. Here, you’ll typically find:
The total amount saved in your RSA.
A breakdown of you and your employer’s contributions.
How well your funds are performing.
Fees and deductions made from your account
You may receive these statements either monthly, quarterly, or annually, as the case may be. The first step to tracking your pension is regularly reviewing these statements to identify any discrepancies or areas for improvement.
Use Mobile Apps
Many PFAs in Nigeria have mobile apps that allow you to monitor your RSA in real time. If your provider has an app, then you’ll get instant access to your pension balance, a breakdown of contributions and earnings, and projection tools that estimate your pension value at retirement.
Monitor Your Employer Remittances
While employers are legally required to remit pension contributions to employees’ RSAs, you can equally keep track to ensure compliance. You want to check your RSA statements to confirm regular contributions are made and follow up with your employer if there are missing payments.
If your employer is not fulfilling their end of the agreement, it is also your right to report their non-compliance to PenCom.
Seek Professional Financial Advice
If you are unsure about how to track your pension savings effectively, we strongly recommend consulting experts like Oak Pensions.
Oak Pensions is Nigeria’s leading pension fund administrator with a record of helping pensioners understand their pension statements. The team at Oak Pensions is trained in pensions law, investment strategies, and retirement planning.
Knowing that a professional is tracking and managing your pension provides peace of mind so you can focus on other aspects of life without worrying about your retirement savings.
Use Pension Calculators
If you haven't heard of pension calculators, they are tools that help you estimate how much you should save or have saved. A pension calculator bases its projections on your:
Current balance
Contribution rates
Investment returns
Inflation
Retirement age
Oak Pensions has its calculator on its website, and it's easy to use without so many technicalities. This way, you can see if you are on track and make necessary adjustments.
Keep an Eye on Charges
Another great way to track your pension savings is knowing how many deductions are made monthly and cumulatively over time. This is extremely important because pension funds often come with management fees, administration costs, and transaction charges.
This means your PFA must be transparent about your plan’s fee structure. And if you suspect you're being charged exorbitantly, you can report it to Pencom.
If you’re not aware of how much is being charged, you could be losing a significant portion of your potential retirement fund without even realizing it.
Conclusion
Tracking your pension savings is essential for a secure retirement, and if you've not been intentional about it, then you’ve been handling your retirement funds wrong.
If you're uncertain how to begin, let Oak Pensions be your trusted pensions partner who'll hold your hand as you smile into retirement. Contact the Oak Pensions team of experts at 09087448661 or send an email via info@oakpensions.com to get started.
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