3 questions to ask yourself before choosing a pension fund administrator (PFA)

Since the Pension Transfer Window was activated by the National Pensions Commission (PenCom) in November 2020, it has given Nigerian workers more control over the management of their retirement savings. The transfer window system essentially allows retired contributors the freedom to switch from a pension fund administrator (PFA) to another no more than once a year.

In their ‘Quarterly summary of pension savings accounts transferred by pension fund administrators’ 2021 report, PenCom revealed that as many as 38,518 workers dissatisfied with their pension fund trustees moved to other PFAs and transferred N148.11 billion to their retirement savings accounts in a year.

People are starting to demand better service delivery from PFAs as they play a huge role in the success of any retirement plan. As much as having a retirement plan is good, not having the right fund administrator is expensive and can cause a lot of inconvenience in retirement.

Pension fund managers make investment decisions that determine your balance growth. For this and other reasons, it is important to do your due diligence before deciding who manages your retirement future.

Whether you already have a PFA or not, here are four key questions you should ask yourself before choosing a pension fund administrator (PFA).

1. What is the return on investment?

When pension plan managers receive money from contributors, the pool of funds is invested on behalf of the contributor, and the earnings on the investments generate income for the contributor in retirement. The investment returns generated by your PFA will significantly determine the value of your account balance in 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 that no one should take for granted when choosing a PFA is convenience. It makes a big 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’s a red flag. Gone are the days of having to wait for statements to be delivered to your door. A good PFA should have a reliable mobile app with a user-friendly interface that allows quick access to your retirement savings account for full transparency. This way, you know whether your employer pays pension contributions on time and can view your account balance at any time.

Another convenience you should take advantage of is monthly statements by email or on demand as you see fit. Make sure your PFA has the right technology to meet your needs.

3. What is the quality of service delivery?

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

Service delivery is a key factor you need to consider when choosing a PFA. Are they used to providing excellent and fast service? The National Pensions Commission (Pencom) has a directory of approved PFAs on its website. You can do a little research on the company to find out.

You should also find out if they have a dedicated, experienced customer support team to help customers resolve issues and provide expert advice. Additionally, you should have a dedicated account manager who is always ready to help with any concerns or issues you may have.

Your retirement future is in your hands

By moving your retirement savings to FCMB Retreatsyou will benefit from high returns on investment, expert management of your assets, friendly and reliable service channels, a dedicated relationship manager and much more.

The team at FCMB Retreats are seasoned experts who are committed to delivering strong returns on investment and excellent customer service. In addition to your regular contribution, you can also opt for the voluntary contribution which gives you the freedom to decide the amount you wish to contribute.

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

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Dolores W. Simon