According to CEO Retirement Benefits Authority (RBA), Charles Mathira, seven out of 10 Kenyans are struggling after retirement because of lack of a savings plan to cushion them.

Mathira noted that according to their statistics most Kenyans do not subscribe to any retirement benefits scheme and as of last year December, only 26% of workers had been saving for retirement and they are targeting it to reach 34% by 2029 through various sensitizations.

In a speech read on his behalf by Tom Kiptanui, Director in charge of Marketing Conduct at RBA, at the Machakos Huduma Centre where there was a three-day RBA clinic to sensitize residents, he noted that those on the informal sector are facing it tough because they don’t prioritize saving for retirement.

“Kenyans struggle financially when they retire because they don’t put savings aside for retirement, especially those in the informal sector where many of them feel saving for retirement is out of reach,” said the CEO.

He pointed out that their presence at Huduma centre is to encourage residents to start saving no matter their income level since there are simple pension plans and individual pension schemes where one can deposit as little as Sh 50 – Sh 100 per day for them to have a dignified retirement without struggling.

“Let’s make sure that when the time comes for us to rest from our work, we do so with peace, dignity and enough to live on,” said Mathira.

On his part Director Kiptanui representing the RBA CEO added that they have a concern with the 26% of Kenyans saving for retirement which reflects that the majority lack a retirement plan and they plan to reach more Kenyans through several interventions.

Kiptanui highlighted that partnering with Huduma centre in Machakos which already have a platform is one of the ways they plan to reach more residents and also interact with them

“Going forward we want our presence fully in Huduma so that we can reach out to many Kenyans,” said the RBA Marketing Director.

He called out employers who do not have a pension scheme for their employees and encouraged them to establish a retirement scheme for their employee’s financial security when they retire.

However, he noted the challenges and possible reasons why Kenyans do not save for retirement where he disclosed that most of them do not have enough information for them to know the channels and avenues to save for retirement.

Kiptanui also decried that Kenyans believe retirement saving is not a requirement and so have not embraced savings as a culture which is set to equip them with the ability to cover their expenses without relying on assistance from relatives.

John Obaka Otieno representing CEO Huduma commended the partnership with RBA in bringing services closer to Mwananchi and reiterated that everyone from even from the informal sector together with the youths should save and have retirement plans that will enable them to retire comfortably.

Source: kenyanews