The Pension Reform act 2014 makes available two broad alternatives when accessing your retirement savings. Please see below the main features of the Programmed Withdrawal and Annuity; the two options to consider when accessing your retirement savings.

Programmed Withdrawal                              Annuity
Programmed withdrawal is a product offered to Retirees by Pension Fund Administrators (PFAs). In addition to a calculated lump sum, it provides Retiree a guaranteed income on a monthly or quarterly basis over an expected life span Annuity Plan is an income replacement product offered to retirees by an Insurance Company. Annuity is a series of payments made to person for life following purchase of the plan. (usually with the proceeds of that person’s Retirement Savings Account under the Pension Reform Act (2014)
A retiree may move to Retiree Life Annuity at anytime Once a Retiree transfers his pensions account to Life Annuity, he/she cannot move back to Programmed Withdrawal. However, he/she can  move to another insurance company with the residual value only after two years
Retirement benefits is in individual RSA Retirement benefits is in a pool of annuity fund (belongs to all members on Annuity).
The profit on investment is credited into the Retiree’s RSA Profit on investment is for the insurance company
Retiree monthly pension can be reviewed upward based on growth recorded in the RSA from time to time. There is no increment on the payment assured for life.
Retiree receives quarterly RSA statement Retiree does not receive any RSA statement
There is provision of Special Reserves to forestall any shortfall in Retiree Fund There is no such special reserve for annuity payment
Upon demise of a Retiree, the RSA balance with accrued interest shall be paid in full to the legal beneficiaries Annuity is guaranteed for only 10 years. If the Retiree dies after the guarantee period, beneficiaries are not entitled to the deceased balance in the Annuity pool

Above information can be verified on National Pension Commission’s twitter page:

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