In a startling development, the registration of workers into the Contributory Pension Scheme (CPS) took a nosedive in the second quarter of 2023 with new Retirement Savings Accounts (RSAs) dropping by a staggering 23.9%.
This sharp decline follows a 10.2% YoY decrease in the first quarter of 2023 (Q1’23) and is causing concern among financial analysts and policymakers.
According to the second-quarter report released by the National Pension Commission (PenCom), only 63,693 new RSAs were registered in the quarter ending on June 30, 2023.
This is a significant drop from the 83,654 recorded in Q1’23 and 93,114 in the same period in 2022.
Stanbic IBTC Pension Managers emerged as the leading provider, accounting for 30% of total enrollments, while NPF Pension Fund Managers registered the lowest numbers with just 33 new RSAs, a mere 0.05% of the total.
Access Pensions, Arms Pensions, and Leadway Pensure secured the second, third, and fourth positions, respectively, in terms of RSA registrations. Conversely, Nigerian University Pension Management Company, Veritas Glanvills Pensions Limited, and Guaranty Trust Pensions Managers Limited lagged behind.
This alarming trend in CPS registration raises questions about the state of retirement planning and financial stability among workers, prompting a need for a closer examination of contributing factors and potential solutions.