Personal
Pension Plan

The Personal Pension Plan (PPP) is a flexible pension savings plan introduced by the National Pension Commission (PenCom) for people not covered under the Contributory Pension Scheme (CPS). It enables self-employed individuals, informal sector workers, and even parents saving for children to build long-term retirement savings. Existing Retirement Savings Account (RSA) holders can also use it for voluntary contributions.

• Self-employed persons (traders, artisans, freelancers, farmers, professionals, small business owners)
• Workers in the informal sector
• Employees in formal organisations making Voluntary Contributions (VC)
• Retirees who still earn income
• Children below 18 can be enrolled by parents or guardians

Yes.

• The parent or guardian funds the contributions
• Withdrawals are not allowed until the child turns 18
• At 18, full account ownership is transferred to the child after verification

For Adults:

• National Identification Number (NIN)
• A registered phone number
• A valid bank account
• Bank Verification Number (BVN)

For Children/Minors — the parent or legal guardian will need to:

• Provide the child's NIN (or proof of enrolment)
• Provide their own valid ID, BVN, and phone number
• Provide the bank account for funding contributions
• The account is opened in the child's name but managed by the guardian until age 18

All contributions must come from your own bank account through:

• Bank transfer
• Mobile app or USSD codes
• Direct debit / standing order
• Point of Sale (POS) or agent banking channels

Your PPP contribution is divided into two parts:

• Retirement savings portion (50%) — goes into your RSA for long-term retirement savings. Accessible only at retirement.
• Contingent (withdrawable) portion (50%) — set aside as contingent savings which you may withdraw under PenCom rules.

Yes, from the contingent portion only:

• Withdrawals begin 3 months after your first contribution
• Not more than once every two (2) calendar months
• You may convert some or all withdrawable savings into retirement savings at year-end
• Payment is made only to your registered bank account
• Processing must be completed within 24 hours

• Withdrawals made within 5 years of contributing are taxed
• Withdrawals made after 5 years are tax-free

You can access your long-term retirement benefits when you are 50 years or older, or when you retire as defined by PenCom.

At retirement, you may receive:

• Full lump-sum withdrawal
• Monthly pension through Programmed Withdrawal (PW)

Required documents: valid identification, written or digital application, and any additional documents required by PenCom.

Yes. A retiree may choose to withdraw their entire PPP balance at retirement, or utilise the balance for Programmed Withdrawal (PW).

Yes. Retirees may continue contributing if they still earn income.

Benefits will be paid to legally recognised beneficiaries in line with PenCom's Regulation on Retirement and Terminal Benefits.

Contributors can choose between:

• Fund 5A (Conservative Fund) — lower risk, steady returns
• Fund 5B (Growth Fund) — higher risk and potentially higher returns (requires a written or electronic request)

Yes. You will receive:

• Quarterly RSA statements automatically
• On-demand statements when requested
• Access through digital channels

To transfer ownership of a child's RSA when they become eligible:

• Submit a written request signed by the parent or legal guardian to the PFA
• Provide valid identification and the child's NIN for age verification
• Ownership of the RSA is formally transferred to the child, who then assumes full account rights and obligations

Yes. All PPP funds are regulated by PenCom and managed by licensed Pension Fund Administrators (PFAs). Funds are securely kept with Pension Fund Custodians (PFCs) appointed by PenCom.