🇳🇬 National Pension Commission (PenCom) • PRA 2014
Nigeria Pension & RSA Retirement Calculator
Calculate monthly employer & employee pension contributions under Section 4 of the Pension Reform Act 2014, and simulate long-term Retirement Savings Account (RSA) compounding growth.
💼 Salary & Contribution Rates
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Under PRA 2014, pension is assessed strictly on monthly BHT earnings.
Statutory minimum: 8% (Section 4(1)(a) PRA 2014).
Statutory minimum: 10% (Section 4(1)(b) PRA 2014).
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Optional voluntary savings deductible from taxable income.
📈 RSA Growth & Retirement Projection
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Standard retirement age in Nigeria is 60 years or 35 years in service.
PenCom RSA Fund II/III benchmark average: 9% - 12% per annum.
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🛡️ Monthly & Long-Term Results
Total Monthly Pension Remittance
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Annual Remittance: ₦0
Employee Deduction (8%) ₦0
Employer Contribution (10%) ₦0
Voluntary Contribution (AVC) ₦0
Monthly PAYE Tax Savings (Est.) ₦0
🏖️ Projected RSA Retirement Balance In 30 Years
Estimated Total RSA Balance ₦0
25% Max Lump Sum at Retirement ₦0
Remaining Balance for Monthly Annuity ₦0
Est. Monthly Programmed Withdrawal ₦0/mo
📜 Key Highlights of Nigeria's Pension Reform Act 2014
The Contributory Pension Scheme (CPS) regulated by the National Pension Commission (PenCom) provides financial security for Nigerian workers:
- Mandatory Coverage: Applies to all public service entities and private companies with 15 or more employees (or 3+ under PenCom guidelines).
- Tax Advantage: Section 10(1) guarantees that contributions made to an approved Retirement Savings Account (RSA) are fully allowable deductions for Personal Income Tax purposes.
- Accessing RSA: Contributors who retire at age 50 or above, or those disengaged from work and unable to secure new employment after 4 months, can access up to 25% of their RSA balance.
- Transfer Window: Contributors have the statutory right to switch between Pension Fund Administrators (PFAs) using PenCom's electronic transfer system once every 12 months.
📊 Statutory Breakdown Matrix
| Statutory Component | Amount / Metric |
|---|---|
| Combined Monthly Pension Remittance (18%) | -- |
| Annual Total Pension Savings | -- |
| Annual Tax Savings from Pension Relief | -- |
| Estimated Projected Monthly Pension Annuity | -- |
MS
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.