Browsing: retirement

retirement pension Kenya

The slow growth in the retirement benefits assets in Kenya in the second half of 2020 has been attributed to the Covid-19 pandemic.

Retirement Benefits Authority Chief Executive Officer Nzomo Mutuku revealed the sector only grew by 5.77 percent from Sh1.322 trillion to Sh1.398 trillion, owing to the pandemic which adversely affected the financial markets and the wider economy in the first half of last year.

Major consequences of the pandemic in the country include massive job losses, which put contribution towards retirement schemes under pressure.

Mutuku said that fund managers and approved issuers in the country held majority of the assets amounting to Sh1.286 trillion.

During the period under review, Mutuku revealed that schemes continued to invest heavily in government securities with the asset class accounting for 44 percent of the total assets under management.

This was followed by immovable property which accounted for 17 percent, investments in guaranteed …

Going by current research, it is correct to note, rather with melancholy, that we will lead much lower quality lives in our retirement days if we do not change our pension and retirement plans today.

In a recent report published by the Daily Nation, experts observe that Kenyans are saving much less due to a number of reasons including daily basic needs, and other saving and investment opportunities.

Subsequently, with minimal cash set aside over the years, pensioners are finding themselves leading a more substandard life than they did during their active years.

According to several studies, pension income is way too low compared to what the pensioners used to earn before retirement. In their study in 2019, Zamara Group, a financial services firm concluded that pensioners receive about a third of their last wages. The study covered 65,000 members from 200 pension schemes. Enwealth Financial Services Limited’s survey indicated…