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The short answer
At 45 you typically have 15 years or more of contributions left, so a small RSA can still grow meaningfully. Start by checking every month your employer deducted was actually remitted, then add voluntary contributions (allowed as long as your total deductions stay within one-third of your emoluments), review whether your fund suits your remaining years, and build savings outside the RSA for needs the pension will not cover.
First, find out why the balance is small
A low balance at 45 usually has one of four causes, and each has a different fix:
- Years without pension contributions: self-employment, informal jobs or employers that never enrolled you.
- Deductions that were never remitted: your payslip shows pension, your RSA does not.
- A second RSA from an old employer that has not been merged with the current one.
- A low pensionable base: contributions are a percentage of emoluments, so a low salary in early years builds slowly.
Missing remittances are the cheapest money to recover, because they are already owed. PenCom's 2023 FAQs say employers must remit within seven working days of paying salary, with a late penalty of at least 2% paid into RSAs. Compare your statement against your payslips month by month and raise gaps with HR in writing, then with PenCom; see complaining to PenCom. If you suspect a second RSA, data recapture is the route PenCom uses to resolve multiple accounts; see RSA data recapture.
Add voluntary contributions
PenCom's FAQs allow an employee to contribute more than the mandatory minimum (8% from you, 10% from the employer), provided total deductions from your pay do not exceed one-third of your monthly emoluments. You arrange this with your employer, who deducts and remits it alongside your mandatory contribution. Under KPMG's reading of the 2014 Act, income earned on voluntary contributions is taxable if withdrawn within five years, so voluntary money works best when you mean to leave it. Read voluntary contributions and tax before you set an amount.
Worked example
Example only, ignoring returns and fees. Ngozi, 45, has ₦2,500,000 in her RSA. Her pensionable emolument is ₦400,000 a month, so mandatory contributions are 18% of that: ₦72,000 a month. She adds a voluntary ₦30,000.
| Over 15 years (180 months) | Without voluntary | With ₦30,000 voluntary |
|---|---|---|
| Starting balance | ₦2,500,000 | ₦2,500,000 |
| Mandatory contributions | ₦12,960,000 | ₦12,960,000 |
| Voluntary contributions | ₦0 | ₦5,400,000 |
| Total before returns and fees | ₦15,460,000 | ₦20,860,000 |
The extra ₦30,000 a month adds ₦5,400,000 before any investment return, about 35% more than the mandatory route alone. She should also check the one-third rule against her full payslip: her 8% share (₦32,000), the voluntary ₦30,000 and her other deductions must together stay at or below one-third of her monthly emoluments.
Review your fund
At 45 you are in Fund II by default and may opt into Fund I until you turn 50, when you move to Fund III. Fund I takes more investment risk and charges a higher fee: 2.1669% a year against 1.7656% for Fund II under PenCom's July 2025 circular. With five years before the automatic move, a switch to Fund I is a short bet. For most people at this age, the bigger gains come from contributing more rather than from changing fund. See RSA Fund I to Fund VI explained.
Use job changes well
Many people in their forties change employer at least once more. Each move is a chance to raise your pensionable base: contributions are a percentage of monthly emoluments, which the 2014 Act, as KPMG summarised it, defines as not less than the total of basic salary, housing and transport allowances. When you negotiate, ask how the package is split, because the same total pay with a bigger basic and allowance share produces a larger pension contribution. Give the new employer your existing RSA PIN and PFA so contributions land in the same account rather than a new one.
Think twice about early withdrawals
Two routes take money out before retirement: up to 25% after job loss under 50, and up to 25% as mortgage equity after 60 months of contributions, provided you are more than three years from retirement. Each one shrinks the balance you are trying to rebuild. If you use either, plan to replace it with extra voluntary contributions.
Build savings outside the RSA
An RSA is designed to pay a monthly income in old age, and most of it is locked until 50 or retirement. You will also want money you can reach: an emergency fund, school fees, a car, a health event. Keep these separate from pension savings so you are not tempted to raid the RSA. A simple split many people use is one pot for emergencies, one for planned spending in the next few years, and the RSA for the long term.
Where Pryme fits
Pryme's Savings Boxes are Naira savings held with Solid Allianze MFB: Flexible for money you may need, Fixed for money you will lock away, Investment for money that funds the bank's lending, and Interest-free for those who prefer it. Rates are shown in the app before you commit. The Personal Assistant can prepare a monthly transfer into a Box for you to approve.
Questions people ask
Is it too late to save for retirement at 45 in Nigeria?
No. With 15 or more years of contributions ahead, adding voluntary contributions and recovering any unremitted deductions can make a large difference.
How much voluntary pension contribution can I make?
PenCom's FAQs allow voluntary contributions as long as your total deductions do not exceed one-third of your monthly emoluments.
Should I move to Fund I at 45?
You can until 50, but the window is short and the fee is higher. Contributing more usually does more for a small balance than switching fund.
How do I know if my employer is remitting my pension?
Compare your RSA statement with your payslips month by month. Raise any gap with HR, then with PenCom.
Sources
- PenCom, Frequently Asked Questions, 2023 edition (PDF) · accessed Oct 2026
- KPMG Nigeria newsletter, The Pension Reform Act 2014 (Jul 2014) · accessed Oct 2026
- PenCom circular PENCOM/TECH/ISD/2025/40, Adjustment of fees structure in the pension industry (28 Jul 2025; copy hosted by Trustfund Pensions) · accessed Oct 2026
- Vanguard, What you need to know about the new RSA multi-fund structure (11 Jul 2018) · 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.