How to Transfer Your RSA Balance to an Annuity Provider in Nigeria

If you’re approaching retirement in Nigeria, one of the most important financial decisions you’ll make is how to receive your pension income.

The two major options are Programmed Withdrawal (PW) through your Pension Fund Administrator (PFA) or Annuity Plan through a licensed insurance company.

In this guide, we’ll walk you through how to transfer your RSA (Retirement Savings Account) balance to an annuity provider, what the process involves, and the benefits of choosing an annuity in 2025.

What Is an RSA (Retirement Savings Account)?

Your Retirement Savings Account (RSA) is the pension account managed by your Pension Fund Administrator (PFA) under Nigeria’s Contributory Pension Scheme (CPS).

Both you and your employer contribute to this account throughout your working years.

When you retire, you have two choices:

1. Programmed Withdrawal — Managed by your PFA.

2. Retirement Life Annuity — Managed by an insurance company.

If you prefer guaranteed lifetime income, the second option (Annuity) is ideal.

What Is an Annuity in Nigeria?

An annuity is a financial contract with an insurance company where your RSA balance is converted into regular income payments (monthly, quarterly, or annually) for the rest of your life.

It’s like turning your pension savings into a salary that never stops.

You can read the full post: Annuity Investment Plan in Nigeria; How to Secure Lifetime Income After Retirement

Steps to Transfer Your RSA Balance to an Annuity Provider

Here’s the official step-by-step process, as guided by the National Pension Commission (PenCom):

Step 1: Choose Your Annuity Provider

Research and select a licensed insurance company approved by PenCom to offer annuities in Nigeria.

Some top options include:
—Custodian Life Assurance
—Leadway Assurance
—AIICO Insurance Plc
—AXA Mansard Insurance

Tip: Compare their interest rates, payment flexibility, and reputation before deciding.

You can simply message us on WhatsApp for expert guide

Step 2: Notify Your Pension Fund Administrator (PFA)

Once you’ve chosen your preferred annuity provider, write a formal notification to your PFA stating your intent to transfer your RSA balance to that provider.

Your PFA will give you the following forms:

—The Annuity Request Form
—A Transfer of Funds Authorization Form

Step 3: Get an Annuity Proposal from the Insurance Company

The chosen insurance company will issue an Annuity Quote/Proposal detailing:

—Expected monthly or quarterly payments
—Terms and conditions
—Start date and duration
You’ll need to review and sign this proposal before submission.

Step 4: PFA Submits Documents to PenCom

Your PFA will then forward all documents to the National Pension Commission (PenCom) for verification and approval.

These Documents usually include:
—Your letter of retirement
—Annuity proposal
—RSA details
—Means of identification

Step 5: Fund Transfer and Activation
After PenCom’s approval:

—Your PFA transfers your RSA balance directly to the insurance company.
—The insurance company then activates your annuity policy.
—You start receiving regular income payments (usually monthly).

Required Documents for RSA Transfer

You’ll typically need the following:

—Valid ID (NIN, Passport, or Voter’s Card)
—Letter of retirement or disengagement
—Passport photograph
—Annuity proposal from insurer
—Completed transfer forms from your PFA

Why You Must Choose Annuity Over Programmed Withdrawal?

—Lifetime income
—inflation protection
—higher income payment
If you want peace of mind and stable lifetime income, annuity is the better long-term option.

Regulatory Oversight

All RSA transfers to annuity providers are regulated by the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) to protect retirees from fraud and mismanagement.

Always ensure you deal only with PenCom-licensed providers like Custodian Life Assurance Plc

Final Thoughts

Transferring your RSA balance to an annuity provider in Nigeria is one of the best retirement decisions you can make in 2025.

It guarantees stable income for life, financial independence, and protection from market risks.

Before you begin, take time to compare annuity rates, confirm licensing, and follow the PenCom-approved transfer process.

Your retirement deserves a plan that never stops paying you — and annuity makes that possible.