Access ARM Pensions has intensified its campaign to raise awareness about Additional Voluntary Contributions (AVCs), stressing that they are one of the most effective ways for Nigerians to achieve financial stability after retirement. The pension administrator said the move is necessary in view of the rising economic uncertainties facing workers and retirees across the country.
The firm made the call during a recent virtual webinar themed “Boost Your Retirement: Making the Most of Additional Voluntary Contributions.” At the session, experts highlighted the importance of AVCs as a tool to strengthen financial security, supplement statutory pension savings, and cushion unexpected economic pressures in later years.
Head of Customer Experience at Access ARM Pensions, Mr. Olushola Adekunle, told participants that retirement planning should not be left to mandatory contributions alone. According to him, AVCs provide individuals with the opportunity to save extra during their working years, ensuring that their quality of life is maintained when they stop earning a salary.
Olushola said retirement should not mean a sharp drop in living standards, but many workers fail to plan adequately. He stressed that statutory pensions often cover only a portion of workers’ needs, leaving a gap that could affect their comfort in old age. “With AVCs, individuals can secure an income that allows them to live in retirement as comfortably as they did while working. What your salary could not do for you while in active service, your pension will not magically fix in retirement, but you can change the outcome by choosing to make AVCs today,” he explained.
Head of Benefit Administration at the firm, Mr. Ayodeji Ayo-Majaro, also shed light on reforms introduced by the National Pension Commission (PenCom) that have made AVCs more attractive in recent years. He said one of the key changes is the one-year retention rule which allows contributors to withdraw up to 50 per cent of their AVC balance after just one year. This flexibility, according to him, makes AVCs more appealing to workers who may need to address short-term needs while still planning for the long term.
Ayo-Majaro further explained that contributors who leave their AVC savings untouched for at least five years enjoy tax exemptions on both the principal and returns. He said this creates an added advantage for those who want to reduce tax liabilities while building long-term wealth. He noted that retirement planning is not only about saving money but about preserving one’s quality of life. He added that AVCs offer contributors the chance to build extra savings during their active years, thereby preventing financial shock at retirement.
He urged Nigerians in both formal and informal sectors to take advantage of the opportunity, pointing out that the scheme’s attractive features such as partial withdrawals, tax benefits, and flexibility make it suitable for workers across different income categories. “Whether you are a salary earner, self-employed, or a contract worker, AVCs provide a pathway to retire with dignity and peace of mind,” Ayo-Majaro said.
Access ARM Pensions also drew attention to the Micro Pension Plan, an initiative designed by PenCom to capture workers in the informal sector. The plan allows artisans, traders, and entrepreneurs to make small but consistent contributions tailored to their irregular income streams. The firm said the expansion of the pension industry to small businesses and self-employed individuals shows the seriousness of regulators and operators in deepening retirement coverage in Nigeria.
Participants at the webinar engaged actively with the speakers, asking questions about how AVCs can be customised to their circumstances. Many of them commended Access ARM Pensions for providing clear answers and practical guidance, saying the session helped them better understand the link between today’s savings habits and tomorrow’s financial security.
The company reaffirmed its commitment to continuous customer education and engagement, saying it will keep organising similar sessions to encourage Nigerians to embrace proactive retirement planning. With inflation, rising healthcare costs, and uncertainty around family support in old age, Access ARM Pensions stressed that AVCs are a reliable way to avoid hardship and live with peace of mind after active service.
