As 2025 winds down, our calendars fill up with holidays, family gatherings, and plans for the new year. It’s a time of reflection. But while you’re reviewing the past year, have you thought about your most important long-term investment—your pension?

For many, a pension is a “set it and forget it” account. Your contributions are deducted, your employer adds their share, and it grows quietly in the background. While this passive approach works, the last quarter of the year presents a golden opportunity to be proactive. A few strategic actions taken before December 31st can have a massive impact on your financial future.

This isn’t about complex financial wizardry. These are five simple, insightful steps you can take right now to end the year on a strong financial note and set yourself up for a wealthier 2026.

1. Conduct a ‘Pension Health Check’: Review Your Statement

Your pension statement is more than just a piece of paper; it’s the report card for your retirement savings. Before the year ends, log in to your PFA’s portal or app and take a close look.

• What to check:

• Contributions: Have all your monthly contributions (both yours and your employer’s) been remitted correctly and on time?
• Investment Growth: Look at the year-to-date growth. This shows you how hard your money has been working for you.
• Personal Details: Is your name, address, and phone number correct? An error here can cause significant delays in the future.

• Why it’s important: This simple review helps you spot any discrepancies early and gives you a clear baseline of where you stand financially as you head into the new year.

2. The Power Move: Make a Final Lump-Sum Voluntary Contribution (VC)

If you do only one thing on this list, make it this one. A Voluntary Contribution is any amount you add to your pension over the mandatory contributions. Making a final, lump-sum VC before year-end—perhaps with an end-of-year bonus or savings—is a true financial power move.

Here’s a data-driven insight to chew on:

Let’s imagine you receive a ₦250,000 end-of-year bonus. If you spend it, it’s gone. But let’s see what happens if you add it as a one-time VC to your pension.

Assuming a conservative average annual return of 10%, that single ₦250,000 contribution could grow to over ₦1.6 million in 20 years, thanks to the magic of compounding.

• Why it’s important: Beyond the incredible growth potential, VCs are tax-deductible. This means making a VC can lower your overall taxable income for the year, giving you an immediate benefit on your PAYE tax.

3. Secure Your Legacy: Update Your Next of Kin (NoK)

This is a crucial but often overlooked piece of financial housekeeping. Life changes—people get married, have children, or circumstances evolve. Your Next of Kin is the legally recognized beneficiary of your pension balance should the unexpected happen.

• What to do: Log in to your pension portal and verify that the NoK listed is still the person you want it to be. Check that their contact information is also up-to-date.
• Why it’s important: An outdated NoK can lead to lengthy and stressful legal complications for your loved ones during a difficult time. A five-minute check now provides lasting peace of mind for your family.

4. Re-evaluate Your Risk Appetite: Is Your Fund Right for You?

The PenCom Multi-Fund Structure is designed to align your investment strategy with your age. Most people under 50 are in the default “Fund II” (balanced growth), and those 50+ are in “Fund III” (conservative). The end of the year is a perfect time to ask: is the default still right for me?

• For contributors under 50: Do you have a high appetite for risk and a long time until retirement? You might consider formally opting into the more aggressive “Fund I” to potentially achieve higher growth.
• For contributors nearing 50: Are you aware that you will be automatically moved to the more conservative Fund III? Understanding this transition helps you plan accordingly.
• Why it’s important: Being in the right fund can make a difference of millions of Naira over your career. Don’t just accept the default; make an informed choice that matches your personal financial philosophy.

5. Set Your 2026 Pension Goal

Now that you’ve reviewed your 2025 performance, it’s time to look ahead. A goal is a plan with a deadline. Instead of just letting your pension happen, decide what you want it to achieve in 2026.

• What to do:

• Set a VC Target: “In 2026, I will contribute an extra ₦15,000 every month.”
• Schedule Check-ins: “I will review my pension statement every quarter.”

• Why it’s important: Setting a clear, measurable goal transforms you from a passive saver into an active architect of your retirement. It provides motivation and a benchmark to measure your success against next year.

Your Future Self is Counting on You

Your retirement might seem far away, but the small, smart decisions you make today are what will build the future you dream of. By taking these five simple steps before December 31st, you are ending your year with financial intention and purpose.

Ready to take action? Log in to the Parthian Pensions client portal today to review your statement, update your details, or make that power-move Voluntary Contribution.