Kenya: Why Most Kenyans Suffer After Retirement
Majority of Kenyans securing their old age by saving under retirement schemes are still exposed to tough times during sunset years, a survey has revealed.
The study by pension fund administrator Zamara Group has revealed that though pension's legislation in the country has improved the governance and operations of the retirement funds, it has done little to improve the coverage and adequacy of retirement benefits to individuals.
Coverage of retirement schemes in Kenya has remained relatively low with less than 50 per cent of the formal sector covered and coverage of the much larger informal sector virtually non-existent.
According to Zamara Group CEO Sundeep Raichura, even those who are saving under retirement schemes have insufficient coverage to provide an adequate income when they retire.
The study which covered 65,000 retirement scheme members, spread across more than 200 retirement funds in the country, show that the retirement savings of Kenyans are able to support a replacement of only 34 per cent of their last earnings in retirement.
This falls below the desired target of 75 per cent which would enable individuals to maintain the same standard of living in retirement.
"The findings were quite significant and worrying in that even the few Kenyans lucky enough to belong to a retirement scheme were sleepwalking to disaster and not even aware of it," Raichura notes in the 2019 report.
He has since called for urgent intervention by government, regulators, employers and the pension industry to take stock of the situation. Read more on All Africa
Source: All Africa