The National Social Security Fund (NSSF), has announced a benefits payment plan dubbed ‘Draw Down’ that will allow qualifying members to retain part of their savings with the Fund at the point of exit.
The plan is meant to help retiring workers keep some amount of money with the Fund, especially for those who may be tempted to spend all the savings got within a short period.
Speaking at the launch of the plan, Patrick Ayota the Fund’s Deputy Managing Director, said the move will enable qualifying members utilize their NSSF savings in installments as they develop a retirement plan or investment that works for them.
A recent survey by the Fund shows that more than 70 per cent of the beneficiaries had depleted their savings received from the Fund within two years, and most of them wished they had an opportunity to receive their savings in installments.
“We have received several requests from qualifying members to pay them a portion of their savings and pay them the balance in installments as they finalize their investment plans for the large sums saved,” Ayota said.
He added: “It will initially be opened to members who attain the age of 55 years and members who attain 50 years but have been out of employment for a period of one year. It will also be paid to a contributing member who joins employment categories that are exempted who have their social protection schemes that are recognized under the existing law and are exempted from contributing to NSSF.”
He said ‘Draw Down’ payment plan will help to extend income security during retirement because a member can decide how much they wish to retain in their NSSF account and when they wish to claim it all.