WHAT KIND OF BENEFITS DO SALARY EARNER STANDS TO GAIN WITH RETIREMENT SAVINGS ACCOUNT (RSA) ?

A holder of a retirement Savings Account, upon retirement or on attaining the age of 50 years shall utilize the balance standing to the credit of his retirement savings account for the following benefits :
(a) Programmed monthly quarterly withdrawal calculated on the basis of an exected life span.
(b) Annuity for life purchased from a life insurance company licensed by the National Insurance Commission with a quarterly payment; and
(c) A lump sum to the balance standing to the credit of his retirement savings account; provided that amount left after sum withdrawal is sufficient to procure annuity or fund programme withdrawals that will produce an amount not less than 50% of his annual remuneration as at the date of his retirement.
COMMENTS /RECOMMENDATIONS
Based on the above 2004 Pension Reform Act, that explains the benefits of workers in the contributory pension scheme (RSA), the programmed withdrawal, annuity and lump sum collection are just part of workers investment benefits amongst many available investment opportunities in the country.
RSA is a good investment, but not better enough if it is not mixed with varieties of other investments like mutual fund, treasury bill, bond, money market fund, investments in properties and real estate.

WHY SHOULD WORKERS NEED OTHER  INVESTMENTS IN ADDITION TO RSA ?
Many workers complain of inadequate salary to take care of their needs, but in retirement the fact of the matter is that monthly pension is going to be far less than the current salary. To bridge the gap between the inadequate current salary and expected inadequate monthly pension withdrawal (in retirement), there is need to reduce or eliminate poverty at old age by adding more investments to the current retirement savings account.
Workers can start additional investment in mutual fund with just N5000= (five Thousand Naira) and graduates upward as the capacity and ability to invest increases.
For further information on assets acquisition, investments, personal finance, pre and post retirement business planning. Feel free to E-mail: thesalaryearners.info@yahoo.com OR CALL: +23408027562783  OR WRITE: P.O Box 11130 Ikeja, Lagos-Nigeria.