READ­ERS’ IN­QUIRY

Daily Trust - - BUSINESS -

Ques­tion:

I don’t un­der­stand how I can take back my pen­sion con­tri­bu­tions un­der this rel­a­tively re­cent con­trib­u­tory sys­tem. I read I can go for pro­grammed with­drawal or an an­nu­ity. How does the an­nu­ity work?

when you re­tire, you are en­ti­tled to take 25 per cent of your pen­sion fund as a lump sum and ei­ther set­tle for a pro­grammed with­drawal or buy an an­nu­ity with the balance in your pen­sion pot. If you de­cide to buy an an­nu­ity, an in­sur­ance com­pany will give you an an­nual in­come for the rest of your life in re­turn for the balance of your con­tri­bu­tions af­ter you have taken the lump sum. - PenCom

An­swer: Send your views, re­ac­tions and ques­tions to

dai­lytrust.com pen­sion@

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