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  • Writer's pictureDamilola Agubata

What a Micro-pension plan can do for you

You’ve heard about micro-pension. And now, you want to know how you can benefit from it. In this article, you will learn everything you need to know about the micro-pension plan.

You will also learn how a micro pension plan can give you a life of comfort that you’ve imagined for yourself in retirement.

We’ll start by explaining what a micro pension plan is and then we’ll break down what it can do for you — especially if you are a self-employed entrepreneur or business owner.

What is the Micro Pension Plan?

In 2014, the Pension Reform Act (PRA) made room for the Contributory Pension Scheme (CPS) to accommodate self-employed individuals and employees working in organizations with less than 3 employees under what is now known as the micro pension scheme.

This means that you are entitled to a Retirement Savings Account (RSA) under the micro pension plan if you are:

  • A self-employed individual who belongs to a trade, Profession, Cooperative or Business Association

  • An employee of an organization with less than three (3) employees.

Now that you know what a micro-pension plan is, here is how you can benefit from saving into your Retirement Savings Account (RSA) as a micro-pension contributor.

An image of an Oak tree in a jar of savings with the words, "What a micro-pension plan can do for you"
What a micro-pension plan can do for you. Credit: Oak Pensions Limited

Benefits of having a micro-pension plan (what it can do for you)

1. It gives you retirement security at your own convenience

Whether you are a business owner or an employee, your retirement is as important as your present job. Therefore, if you are not taking active steps to ensure that you retire into a stable and comfortable life, you are making a mistake you might regret.

Take a look at retirees around you now. What are they relying on to sustain themselves? The majority of retirees who are enjoying their retirement now are doing so because they took the right step when they were younger.

You can also be like them. And with a micro pension plan, it will be at your own convenience. This is because you can save in your Retirement Savings Account (RSA) at your own frequency: monthly, daily, or weekly — anyhow you want it, it’s all up to you.

2. You can access your money even before you retire

When you open a Retirement Savings Account (RSA) and start saving in it as a micro pension contributor, you won’t have to wait until you retire before you can withdraw from the account.

This is called contingent withdrawal. It is specifically designed for you as a Micro pension contributor to help you feel comfortable even before you retire.

A contingent withdrawal means that you will be able to withdraw up to 40% of your total RSA balance.

3. You are not under pressure to save more than you can afford to

Unlike the Contributory Pension Scheme for workers in the formal sector that mandates a minimum of 8% contribution from the employee and 10% contribution from the employer, the amount of contribution for contributors under the Micro-pension plan does not have a mandatory amount.

Saving is dependent on your financial capacity and pension aspiration. No one will force you to contribute more than you can afford to save.

Your account will be managed and administered by a Pension Fund Administrator (PFA). And Oak Pensions Limited is a PFA that is licensed under the new Pension Reform Act (PRA) 2014 to manage the Micro-pension plan for contributors that are eligible for this plan.

If you would like to open a Retirement Savings Account (RSA) under the Micro-pension plan, you can call the Marketing Manager at 09087448661 or send an email to

At Oak Pensions Limited, we encourage you to start a Micro-pension plan because you are totally in control of your contributions.


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