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So, you finally decided to open a pension account. Great, but that is only the first step in the process.

6 types of pension plans: Deciding which is right for you | Pulse Nigeria

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<h1>Since you are reading this, you need to know how you can get started and what plan is the right fit for you.</h1>

An informed understanding of the various pension plans will help you make the right decision. Whether you are employed in the private or public sector, or self-employed, there’s a plan tailored for you.

The contributory pension scheme works for you whether you’re in the private or public sector. Under this scheme, you’re eligible for a Retirement Savings Account (RSA).

A retirement savings account is a dedicated account that allows monthly contributions from you and your employer. The amount contributed is usually between 15%-20% of your salary.&nbsp;

Your RSA acts like a savings account, except contributions, are made on autopilot. That means you don’t have to worry about deducting the money from your bank account every month. However, the difference between a savings account and an RSA is that your contributions are invested in financial instruments to yield profits, which protects your pension fund from inflation.

Premium Pension has an excellent record in delivering value on pension funds. Trusted by over 700,000 members, they put in the work to make sure all their members are well prepared for their golden years.

<h2>2. Voluntary Contribution Scheme</h2>

The voluntary contribution is an additional contribution plan and it is optional. You can use this opt-in for this scheme in addition to having a contributory pension scheme.&nbsp;

With this, you can make more contributions to your pension fund. This scheme is also more flexible. Unlike the RSA, your contribution can be made monthly, quarterly, biannually, or even weekly.

Your employer would need to be notified if you choose to opt-in for this option.

In 2014, the micro pension scheme was introduced to make provision for self-employed individuals.&nbsp;

This plan allows for more flexibility for entrepreneurs, traders, professionals, and other self-employed persons that don't qualify for the contributory pension scheme.&nbsp;

If you're self-employed, this is the plan you should opt-in for.&nbsp;

<h2>4. Cross-Border Pension Scheme&nbsp;</h2>

So far, we have highlighted pension plans for people who live in the country. But what happens if you are outside the country?&nbsp;

If you live outside the country, you are not left out.&nbsp;

The cross-border pension scheme enables Nigerians who are employed outside the country to make contributions to the pension fund. Your Retirement Savings Account will be denominated in Naira as well.

This plan still falls under the contributory scheme and is meant for retirees.

As a retiree, you are not high-risk tolerant. Therefore, your pension fund will be invested in financial instruments that are low-risk, mainly fixed income instruments such as corporate or government bonds.&nbsp;

Premium Pension managers are experts at risk management, ensuring that your fund is secured until retirement.

You can apply for a programmed withdrawal plan, enabling you to receive your pension periodically either monthly or quarterly. A second choice is that you can make a withdrawal in a lump sum if your total pension fund is below N500,000.&nbsp;

However, you can only access this plan if you are 50 years and above.&nbsp;

<h2>6. Institutional Pension Fund Management</h2>

This product is available to cooperate bodies, MDAs and State Governments to manage. This isn’t an individual plan as it is tailored to suit corporate institutions instead.

&nbsp;Your golden years are a special time in your life. It's important that you make the informed decisions about your retirement plan so you can live out those years to the fullest.&nbsp;

The Pension Fund Administrator (PFA) you choose also goes a long way to ensure that your financial needs are met during retirement. That's why you cannot afford to make the wrong choice when choosing a PFA. You should read this <a href="https://www.zikoko.com/life/how-to-choose-the-right-pension-fund-administrator-pfa/">short guide</a> on how to choose the right PFA.

With this, you can decide what plan is best suited for you. Click <a href="https://datarecapture.premiumpension.com/expressinterest/Home/PPLProspect">https://datarecapture.premiumpension.com/expressinterest/Home/PPLProspect</a> to make the Switch to Premium Pension for optimum returns, timely benefits payment and exceptional customer service in offices across the 36 states of Nigeria and the FCT.

&nbsp;You can also visit <a href="http://www.premiumpension.com/">http://www.premiumpension.com/</a> to find out more or simply call 09- 461-5700-4.

*This is a featured post.

6 types of pension plans: Deciding which is right for you.  [dnaindia]

6 types of pension plans: Deciding which is right for you

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