Men outpace women in pension savings as enrollment jumps 14%

Pension enrollment has surged by 13.9 percent over the past five years, with men outpacing women in securing retirement.

The growth in enrolment has been driven by increased awareness and efforts on financial inclusion, according to the National Pension Commission (PenCom).

Data from ‘Pension Industry Performance Dashboard’ show that over the past five years, Retirement Savings Account (RSA) registration increased by 13.93 percent, from 9,215,788 in the fourth quarter (Q4) of 2020 to 10,499,358 in third quarter (Q3) of 2024.

The data further reveal that of the registered members, 61 percent were male and 38 percent were female during this period.

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Analysts say the trend highlights the growing gap in retirement savings between genders despite overall progress in pension participation.

According to data, 118,339 new RSA registrations were recorded in the year-to-date period for 2024, reflecting consistent awareness and inclusion efforts.

Nelson Oguguo, a human resource expert, said men often have more consistent career trajectories and higher wages over time, which can lead to higher pension participation and contributions.

According to him, “Women are more likely to take career breaks for caregiving or to work part-time jobs, both of which can impact their long-term earnings potential and, in turn, their ability to save for retirement.”

This further confirms Enhancing Financial Innovation and Access (EFInA)’s report that 26 percent of Nigerians remain financially excluded, many of whom are women, youth, and people in rural communities, who form the largest segment of last-mile consumers.

Susan Oranye, former spokesperson at Pension Fund Operators Association of Nigeria. said women’s passion for savings has not become significant because many of them operate in the informal sector where there is not enough structure to encourage savings habit.

She said this will begin to change over time as the country embraces a micro pension scheme that will open the door for women, particularly in the informal sector.

“When this scheme expands, you will begin to see more women enroll in the pension scheme like their male counterparts.”

Micro Pension Plan (MPP) was launched in Nigeria in 2019 to provide retirement savings for people working in the informal sector, Total registration moved from inception to Q3 2024 stood at 164,031.

Data further show that out of the registered number of informal sector workers, funded RSAs was 12,241 while total amount so far generated was N967,194,762.23 as of Q3 of 2024, representing a growth of N878,065,827.85 from the 2020 figure of N89,128,934.38.

An International Labour Organisation (ILO) report on the ‘The gender gap in employment’ notes that in countries at all levels of economic development, a woman’s personal preference is the key factor in determining whether she will seek out and engage in paid work.

It noted however that this preference is heavily influenced by socio-economic constraints and pressure to conform to traditional gender roles.

A survey conducted in Nigeria in 2008 by EFInA revealed that about 53.0 percent of adults were excluded from financial services.

The global pursuit of financial inclusion as a vehicle for economic development had a positive effect in Nigeria as the exclusion rate reduced from 53.0 percent in 2008 to 46.3 percent in 2010 and 26 percent in 2024.

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Encouraged by the positive development, the Central Bank of Nigeria (CBN), in collaboration with stakeholders, launched the National Financial Inclusion Strategy on 23rd October 2012 aimed at further reducing the exclusion rate to 20 percent by 2020.

Specifically, the number of adult Nigerians with access to payment services was to increase from 21.6 percent in 2010 to 70 percent in 2020, while those with access to savings should increase from 24.0 percent to 60 percent. Credit would rise from 2 percent to 40 percent, insurance from 1 percent to 40 percent and pensions from 5 percent to 40 percent within the same period.

The targets were based on a benchmarking exercise carried out with peer countries, while also taking into consideration critical growth factors in the Nigerian environment.

Cumulative contributions since the inception of the Contributory Pension Scheme (CPS) reached N10.97 trillion at the end of Q3 of 2024 when total pension assets rose to N21.38 trillion.