This Nigeria pension and retirement calculator projects the balance of your Retirement Savings Account (RSA) under the Contributory Pension Scheme (CPS) and converts it into a lump sum plus a monthly pension across your retirement years.
How it works
Under the Pension Reform Act 2014, your RSA receives a minimum of 8% from you and 10% from your employer — 18% of monthly emoluments — managed by a Pension Fund Administrator (PFA). Each year the calculator adds that contribution (plus any voluntary amount), grows the balance at your assumed net RSA return, and grows your salary at your chosen rate.
At retirement it lets you take a lump sum, then annuitises the remaining pool over your expected drawdown years:
income = pool · r ⁄ (1 − (1 + r)⁻ʸ)
where r is the in-retirement return and y is the number of retirement years. Dividing by 12 gives your monthly pension.
Example
A 30-year-old earning ₦400,000 a month with a ₦2,000,000 starting RSA, contributing the 18% minimum at a 12% return until age 60, builds a large naira balance. Taking a 25% lump sum and drawing the rest to age 85 at a 9% return produces a monthly pension shown live as you change the inputs.
Notes
- The 18% is a minimum — voluntary contributions raise both the balance and the pension.
- The pension figure is an estimate; the real amount depends on PFA returns and whether you pick programmed withdrawal or an annuity.
- Naira returns can look high while inflation erodes real value — test conservative assumptions too.