Tuesday, February 27

3 questions to ask before choosing a Pension Fund Administrator (PFA)


Since the Pension Transfer Window was activated by the National Pension Commission (PenCom) in November 2020, it has given working Nigerians more control over the management of their retirement savings. The Transfer Window system essentially allows pension contributors the liberty to switch from one Pension Fund Administrator (PFA) to another at most once a year.

In their ‘Quarterly summary of Retirement Savings Accounts transferred by Pension Fund Administrators’ 2021 report, PenCom revealed that no fewer than 38,518 workers who were displeased with their Pension Fund Administrators moved to other PFAs and transferred N148.11bn in their Retirement Savings Accounts within one year.

People are beginning to demand better service delivery from PFAs because they play a huge role in the success of any retirement plan. In as much as having a pension plan is great, not having the right fund administrator is costly and can cause a lot of inconvenience during retirement.

Pension Fund Managers take investment decisions that determine how well your balance grows. For this reason amongst others, it is important to do due diligence before settling for who manages the future of your retirement.

Whether you already have a PFA or not, here are four critical questions you must ask before choosing a Pension Fund Administrator (PFA).

1. What is the Return on Investment?

When pension managers receive money from contributors, the pool of funds is invested on the contributor’s behalf, and the earnings on the investments generate income to the contributor upon retirement. Investment returns delivered by your PFA will greatly determine the value of your account balance upon retirement. Confirm that your PFA has the expertise to deliver high returns and a verifiable track record to back it up before committing to them.

2. Is it convenient and accessible?

One factor nobody should take for granted when choosing a PFA is convenience. It makes a lot of difference to have access to up-to-date information about your pensions without breaking a sweat. If you have to worry about work and at the same time worry about your retirement money that is a red flag. Gone are the days when you have to wait for statements to be delivered to your doorstep. A good PFA should have a reliable mobile app with a user-friendly interface that allows for quick access to your Retirement Savings Account for full transparency. That way, you know if your employer remits pension contributions in good time and see your account balance at any point in time.

Another convenience you should enjoy is monthly statements via email or on request as you deem fit. Ensure your PFA has the right technology to cater to your needs.

3. How good is the service delivery?

No matter how good a service is, it loses value if the delivery is poor. One common grievance contributors have with pension managers is late or delayed payments. When this happens, it leads to distrust and unnecessary worry.

Service delivery is a key factor you must consider when choosing a PFA. Do they have a record of delivering excellent and timely service? The National Pension Commission (Pencom) has a directory of licensed PFAs on its website. You can do a little research about the Company to find out.

You should also find out if they have a dedicated customer support team experienced at helping clients navigate through issues and provide informed guidance. As a plus, you should have a dedicated account officer always ready to attend to any concerns or issues you might have.

The future of your retirement is in your hands

By moving your retirement savings to FCMB Pensions, you will enjoy high returns on investment, expert management of your assets, user-friendly and reliable service channels, a dedicated relationship manager and so much more.

The team at FCMB Pensions are seasoned experts committed to delivering strong investment returns and excellent customer support. In addition to your regular contribution, you can also opt for the voluntary contribution that allows you the liberty to decide the amount you wish to contribute.

Now is the perfect time to secure those post-work years correctly. Switch to FCMB Pensions today.

Notes

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