The National Pension Commission has disclosed that about N82.22bn was paid in death benefits to 10,451 relatives (next of kin) of deceased pension contributors in 2024.

This is according to the latest Pension Industry Information Dashboard.

The figure represents a 40.3 per cent increase from the N58.6bn paid in 2023, affirming the growing financial impact of the pension scheme in providing support for families of deceased contributors.

An analysis of the data shows that death benefits have consistently increased over the years.

In addition to death benefits, total pension payouts across various categories remained substantial in 2024.

The monthly programmed withdrawal scheme, which allows retirees to access funds at regular intervals saw a cumulative N114.5bn disbursed as of Q3 2024.

The retiree life annuity system, which ensures a steady income for pensioners, recorded N689.4bn in premium payments.

Meanwhile, lump-sum payments, which grant retirees a portion of their savings upon retirement, stood at N83.73bn, covering 19,481 retirees in 2024.

The number of retirees opting for lump sums has reduced compared to previous years, indicating a preference for structured withdrawals in line with long-term financial planning.

The pension industry continues to grow, with cumulative pension contributions reaching N10.97tn by the third quarter of 2024.

Public sector contributions accounted for N5.71tn (52.1 per cent), while private sector contributions stood at N5.25tn (47.9 per cent).

Meanwhile, the RSA transfer system, which allows contributors to switch pension fund administrators once a year, has recorded increased activity.

As at Q3 2024, a total of N1.26tn had been transferred since inception, with 67,146 RSA transfers recorded in 2024.

The figures suggest greater awareness and competition among pension administrators, as contributors seek better returns and service delivery.

Despite steady growth in pension assets and contributions, economic conditions and inflationary pressures continue to influence the pension industry.