What Is PenCare?
PenCare, the Pension Industry Health Care Initiative, is a healthcare programme introduced by the National Pension Commission (PenCom) in May 2026 to provide eligible retirees under Nigeria’s Contributory Pension Scheme with access to healthcare services.
The programme addresses an important gap in Nigeria’s retirement system. For nearly two decades, pensions have largely focused on providing retirees with a regular source of income after their working years. PenCare expands the conversation by recognising that financial security in retirement is closely connected to access to affordable healthcare.
During the announcement of the initiative, Abdulqadr Dahiru, Head of the Investment Supervision Department at PenCom, stated that medical costs have historically consumed between 60% and 70% of low-income retirees’ monthly pensions. PenCare is designed to help reduce this financial burden by providing eligible retirees with access to healthcare without deductions from their pension savings.
Why PenCare Matters
Nigeria has a high level of out-of-pocket healthcare spending, with many individuals paying directly for a significant portion of their medical expenses. For retirees living on limited monthly pensions, an unexpected illness or hospital admission can quickly consume a substantial portion of their income.
Chronic conditions such as hypertension, diabetes and arthritis can also create ongoing healthcare expenses, sometimes forcing retirees to delay treatment or make difficult choices between medical care and other essential needs.
Research has also highlighted the significant number of Nigerians without adequate financial protection against medical expenses. Retirees, particularly those living on fixed incomes, can be especially vulnerable.
PenCare recognises an important reality: true retirement security is not only about receiving an income. It is also about having access to support that helps retirees maintain their health and quality of life.
How PenCare Works
PenCare is structured as a Corporate Social Responsibility (CSR) initiative funded jointly by PenCom and Pension Fund Administrators. Importantly, the programme is not funded from retirees’ pension savings.
Funding
The Commission has committed to set aside a percentage of its fees towards the initiative, while Pension Fund Administrators are expected to contribute a percentage of their Profit After Tax. The programme is designed to provide additional social support for eligible retirees without deductions from their Retirement Savings Accounts.
Healthcare Service Delivery
Eligible retirees enrol under the programme and receive healthcare services through designated Health Maintenance Organisations (HMOs) and their approved healthcare-provider networks. This structure is intended to help retirees access healthcare through an organised network of service providers.
Coverage
Eligible retirees will have access to healthcare services provided under the PenCare programme through designated HMOs and healthcare providers. The scope of services available will be determined by the programme’s approved benefit package. As the initiative progresses, the experience and outcomes from the pilot will help inform future decisions regarding the programme.
PenCare Governance
PenCare is overseen by a dedicated Board of Trustees responsible for providing strategic direction, promoting accountability and supporting the sustainable implementation of the initiative. The governance structure is designed to provide appropriate oversight of the programme and its long-term sustainability.
Who Is Eligible for PenCare?
To qualify for PenCare, retirees must meet the programme’s eligibility requirements, including:
- Being at least 60 years old
- Receiving a monthly pension of ₦150,000 or less
- Being a retiree registered under the Contributory Pension Scheme and receiving a monthly pension through a licensed Pension Fund Administrator
The programme initially set the monthly pension threshold at ₦70,000. However, in July 2026, PenCom expanded the eligibility threshold to ₦150,000.
Why Was the Income Threshold Increased?
The pilot programme was designed to enrol up to 30,000 eligible retirees. By July 2026, approximately 13,000 retirees had enrolled.
PenCom subsequently increased the monthly pension eligibility threshold from ₦70,000 to ₦150,000 to increase participation in the pilot programme.
According to PenCom’s Director-General, Omolola Oloworaran, the higher threshold was introduced as a temporary measure to help increase participation and enable the programme to reach the scale required for meaningful evaluation.
The outcomes of the pilot will provide important insights into the programme’s effectiveness, implementation and long-term sustainability.
How to Enrol
Registration is subject to the programme’s eligibility requirements and available slots and is operated on a first-come, first-served basis.
CardinalStone Pensions retirees can also visit one of our offices for assistance and further guidance on the registration process.
What PenCare Could Mean for Retirement in Nigeria
Beyond its direct benefits to eligible retirees, PenCare represents an important development in the conversation around retirement security in Nigeria.
The initiative recognises that financial wellbeing in retirement is closely connected to access to affordable healthcare. A pension income can provide financial support after retirement, but unexpected healthcare costs can place significant pressure on retirees and their families.
By introducing healthcare support for eligible retirees, PenCare brings greater attention to the relationship between financial security and health in retirement.
As the pilot progresses, its outcomes could provide useful insights into how additional social support can complement traditional pension benefits and improve the retirement experience for Nigerians.
What This Means for You
For eligible retirees, PenCare provides an additional layer of support in managing the financial pressures associated with healthcare.
However, the broader lesson is equally important: preparing for retirement should start long before retirement itself.
Building towards retirement, making additional contributions through a Personal Pension Plan and exploring other pension options, including foreign-currency pension contributions, can help individuals build greater financial resilience for the future.
Retirement planning is not simply about preparing to stop working. It is about preparing for the life you want to live after work.
Say YES to a More Secure Retirement
Whether you are approaching retirement or still building your career, taking steps towards your financial future today can make a meaningful difference tomorrow.
Say YES to planning ahead. Say YES to a more secure retirement with CardinalStone Pensions.
- Transfer Your RSA to CardinalStone Pensions
- Explore our Personal Pension Plan
- Have questions? Call us on +2349060001020 or email info@cardinalstonepensions.com.