Analysis of RSA Registrations, Inception to Dec 2021 – PensionNigeria

Analysis of RSA Registrations, Inception to Dec 2021

The total number of Retirement Savings Account (RSA) registrations by Pension Fund Administrators (PFAs) per year, has reduced drastically from 69.06% in 2006 and 2007 year over year to 3.4% in 2020 and 2021 year over year.

Looking at data from the inception of Contributory Pension Scheme (CPS), average percentage increase in RSA registrations Year over Year from 2006 to 2010 was double digits, above 13% with the actual number of RSA registrations ranging between 500,000 to 1,500,000 registrations per year between 2006 to 2010.

From 2011 to 2018, the average percentage increase in RSA registrations Year over Year was 8.01% while the actual number of RSA registrations was an average of 483,492. A review of RSA registrations for the past three years, 2019, 2020 and 2021, reveals an average of 372,981 per year with an average percentage increase of 4.26%.

The total number of Retirement Savings Account (RSA) registrations by Pension Fund Administrators (PFAs) for the year 2021 was 313,339, which was the lowest annual registrations by PFAs since inception of the Contributory Pension Scheme (CPS) to 31 December 2021. The Year over Year percentage increase for RSA registrations was 3.4% which is also the lowest percentage increase from inception to date.

Please see below Total RSA Registrations from Inception to December 2021

RSA Registration based on Age and Gender

A review of RSA registration by age distribution shows that the contributors in the age bracket “less than 39 years old” accounted for 72.97% of RSA holders as at 31 December 2021. RSA holders in the age bracket “40-49 years” accounted for 18.64% while RSA holders who are 50 years and above accounted for 7.42%.

The implication of the above is that RSA holders are relatively young, thus providing ample opportunity for investing pension funds in relatively long-term investments such as alternative assets, without the risk of investment mismatch.

We also looked at the RSA Registration based on gender as at December 2021. The review revealed that 69.98% RSA holders as at December 2021 are male (compared to 70.61% as at December 2018) while 30.02% RSA holders as at 31 December 2021 are female (compared to 29.39% as at December 2018).

It is expected that RSA registration will continue to grow in 2022 considering the marketing efforts being carried out by National Pension Commission (PenCom), Pension Fund Operators (PenOP) and Pension Fund Administrators (PFAs) on the Micro Pension Plan and increased compliance by the private sector employers.

Please see below
RSA Registration based on Age and Gender as at Dec 2021 and
RSA Registration as at Dec 2018 with Age, Gender & Sector Breakdown

Check out other Inception to Date Report here

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