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The short answer
Under section 7(2) of the Pension Reform Act 2014, an RSA holder who resigns, leaves voluntarily or is disengaged, and does not get another job within four months, can withdraw up to 25% of the RSA balance. It is available once in a lifetime, the rest stays for retirement, and you apply through your own PFA after completing data recapture.
Losing a job is often the moment people first remember they have a pension pot. The law allows a partial withdrawal to bridge the gap, but it comes with a waiting period, a cap and a one-time limit. Here is how it works and how to apply.
Who qualifies
A summary of the Pension Reform Act 2014 published when the Act was signed notes that section 7(2) lets people who leave work voluntarily, resign or are disengaged access 25% of their RSA balance if they cannot find a new job within four months. Under the 2004 Act, only people who lost their jobs involuntarily qualified, and only after six months. TrustFund Pensions' benefits page adds that the withdrawal is available once in a lifetime and that the remaining balance is paid at retirement.
- Trigger
- You left a job: resigned, retired early or were disengaged
- Waiting period
- At least four months without new employment
- Maximum
- 25% of your RSA balance
- How often
- Once in a lifetime
- Who pays
- Your current PFA, from your RSA
Before you apply
- Data recapture: TrustFund Pensions' page says a successful data recapture is required before any benefit request. PenCom's 2023 FAQ says unrecaptured holders cannot access benefits. See RSA data recapture.
- Your PIN: you will need your RSA PIN; if you have lost it, see how to retrieve your PEN.
- Contributions up to date: check that your last employer remitted everything up to your exit, because the 25% is calculated on the balance actually in the account.
Steps
- Wait until four months have passed since your exit date.
- Download or request your PFA's benefit application form for temporary loss of employment.
- Gather the documents the form lists. The list is set by the PFA under PenCom rules; expect it to ask for evidence of the exit and of your identity, and possibly a declaration that you have not found new work. Do not rely on a list from a forum; use the form itself.
- Submit through the PFA's portal, branch or email, as the form directs, and keep the reference.
- The PFA processes the request and seeks the required approval; ask for the expected timeline when you submit.
- Confirm the payment against your RSA statement once it arrives.
Why applications stall
- Applying before the four months have passed.
- Data recapture not completed, or details on the record that do not match your ID.
- Missing contributions from the last employer, which means the balance, and so the 25%, is lower than you expect.
- Two RSAs under different PINs from different jobs; ask your PFA to merge them before applying.
- A bank account in a name that does not match your RSA record.
If you start a new job while the application is being processed, tell your PFA. The withdrawal is meant for people without employment, and a new employer will begin remitting to the same RSA under your existing PIN.
Worked example and the long-term cost
Example only. Emeka's RSA balance is ₦2,400,000 when he applies. The maximum withdrawal is 25%, or ₦600,000, leaving ₦1,800,000 invested for retirement.
The money withdrawn does not come back unless you top it up with voluntary contributions, and it no longer earns returns for the years until you retire. Taking less than the maximum is allowed. If you can bridge the gap with savings, the pension pot stays intact; if you cannot, the 25% exists for exactly this situation.
Example only, continued. Suppose Emeka is 32 and leaves the ₦600,000 invested instead. If it grew at an average of 10% a year (an assumption, not a forecast), it would roughly double in a little over seven years, by the rule of 72 (72 divided by 10 is 7.2). Over 18 years to age 50 it would double about two and a half times. That is the real price of the withdrawal: not the ₦600,000 itself, but what it might have become. Weigh it against the cost of borrowing or of falling behind on rent while you look for work.
How it affects later options
PenCom's 2023 FAQ says a holder who has taken the 25% after job loss can still use the residential mortgage equity option later, provided they are back in active service and meet the 60-month contribution requirement. See using 25% of your RSA for a mortgage. Voluntary contributions have their own rules: the PRA 2014 summary notes that under section 10(4), voluntary contributions withdrawn within five years are taxed on the income earned.
Where Pryme fits
If the withdrawal is your bridge between jobs, keeping it apart from everyday spending helps it last. A Flexible Savings Box keeps it reachable, and a Personal Account's Personal Assistant can prepare bill reminders and transfers for your approval.
Questions people ask
How long after resignation can I collect 25% of my pension?
After four months without a new job, under section 7(2) of the Pension Reform Act 2014. Apply to your PFA.
Can I collect 25% of my pension if I resigned?
Yes. The 2014 Act extended the 25% withdrawal to people who resign or leave voluntarily, not only those dismissed, provided four months pass without new employment.
Can I collect the 25% twice?
No. TrustFund Pensions' benefits page describes it as available once in a lifetime.
How long does it take to get 25% of RSA?
It depends on your PFA and the approval process. Ask for the expected timeline when you submit, and check your statement once paid.
Sources
- Highlights of the Pension Reform Act (PRA) 2014, Standard Bank Community · accessed Oct 2026
- Benefit Payment Types, TrustFund Pensions · accessed Oct 2026
- Frequently Asked Questions 2023, National Pension Commission · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.