With early planning, pension schemes are key for peace of mind after retirement #AD

Insights from Kenya’s 9th Pensioner Survey by the Retirement Benefits Authority (RBA) paint a dire picture of Kenya’s readiness for an ageing workforce and their financial stability after retirement.

According to the report, a majority of Kenyans who plan for retirement are formally employed, with up to 83% from the informal sector being unprepared for retirement.

Further, despite many saving for 30-40 years, only 41% of respondents felt that their savings were sufficient; a majority struggled with a dependency burden from unemployed adult children, and costs arising from health concerns.

These findings highlight an urgent need for Kenyans, whether in formal employment or the informal sector, to embrace structured pension saving schemes and begin saving early.

Financial experts consistently stress that planning for retirement is no longer a luxury reserved for the wealthy but a necessity for anyone aiming to maintain their standard of living once they stop working.

Developing a habit of saving is critical to take full advantage of compound interest over time. A shilling invested today multiplies by retirement, offering security and peace of mind in later years.

Beyond the long-term financial growth, pension savers also benefit from Kenya’s favourable regulatory environment, where contributions to registered retirement schemes attract tax-deductible relief.

While the National Social Security Fund (NSSF) provides a basic safety net, it often falls short of meeting all retirement needs, prompting many to consider private pension plans to close anticipated income gaps.

In response to growing concerns over healthcare costs in retirement, Kenya has also introduced post-retirement medical schemes.

These help cover age-related health expenses, which are among the most significant threats to financial stability in old age.

CIC Insurance has re-engineered retirement solutions to blend traditional pension benefits with innovative health components and flexible income options. The cornerstone of CIC’s offering is the Jipange Plus Pension Plan.

Pre-registered Retirement Benefits Authority (RBA), and Kenya Revenue Authority (KRA), Jipange Plus takes the hassle out of compliance, making it easy for individuals and organisations to sign up with just a simple enrolment form.

The plan has tax-exempt contributions, and members enjoy tax incentives on returns and, upon attaining retirement age, receive guarantees on investment income and access to CIC’s proven investment expertise, giving members an opportunity to not only grow their savings but also gain peace of mind knowing their future is secure.

A standout feature of CICs Jipange Plus is the optional Post‑Retirement Medical Fund (PRMF). Under this arrangement, members may dedicate up to 10 per cent of their retirement benefits or make regular contributions, which will enjoy a tax-deductible incentive of up to Ksh. 15,000 per month to cover healthcare expenses after retirement.

This approach anticipates the reality that medical costs often rise with the emergence of old age-related ailments.

With the Jipange Plus Pension Plan, clients benefit from active medical cover, thereby avoiding instances where they have to slice off a portion of their pension kitty to cater for medical expenses.

For retirees seeking a steady income, the CIC’s Annuity Plan converts a lump sum into periodic payments for life. Whether you choose a single or joint life option, with fixed or increasing pay-outs, the plan is designed to protect from longevity risk, ensuring that holders never outlive their savings.

It is a solution for anyone who values income stability and wants the reassurance of a predictable cash flow throughout retirement.

To deepen pension conversations and drive meaningful action at the corporate and institutional level, CIC Insurance Group offers Umbrella Retirement Benefits Schemes designed for flexibility and impact.

These schemes provide both pooled and segregated fund options. Small and medium enterprises (SMEs), for example, can tap into multi-employer Tier II schemes, enjoying the benefits of cost-sharing and simplified administration.

On the other hand, larger organisations can opt for dedicated segregated funds with customised investment mandates aligned to their strategic goals.

These are examples of the diverse solutions available to Kenyans, no matter their need. In a landscape where life expectancy continues to rise, retirement planning has never been more critical.

By starting early and choosing a comprehensive pension solution, one that combines growth and security, Kenyan professionals can look forward to truly golden years.

To reach us for more about securing old age, please use the contacts below:

Phone:           0703099120

SMS:               22471

WhatsApp:    0703099000

Email:             callc@cic.co.ke