• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

LETTERS: The looming challenge of pension adequacy

Kenyan Business Feed by Kenyan Business Feed
LETTERS: The looming challenge of pension adequacy
Share on FacebookShare on Twitter

Table of Contents

Toggle
        • Letters
  • LETTERS: The looming challenge of pension adequacy
Letters

LETTERS: The looming challenge of pension adequacy

Wednesday, June 12, 2019 20:28


By ARTH SHAH |

Pensioners
Pension adequacy is when a retiree has sufficient monthly income to live a good retired life. FILE PHOTO | NMG 

Sadly, the current situation of the retirement benefits industry in Kenya is a puzzle.

And like every puzzle, the pieces are supposed to be laid out in a logical manner to successfully complete the challenge.

In the case of the pension puzzle, we have identified pieces of the puzzle that are already fitting well, pieces of the puzzle that need re-ordering or re-fitting, pieces of the puzzle that are missing and pieces of the puzzle that need to be hit (by a hammer) on to the puzzle.

The first piece of the puzzle focuses on the challenges of pension adequacy. A pension is a monthly income that the retiree would receive from their retirement savings.

Adequacy in simple terms is the state of sufficiency.

Therefore, pension adequacy is when a retiree has sufficient monthly income to live a good retired life.

Experts of the retirement benefits industry around the world say that a sufficient pension is between 60-80 percent of the retirees’ last salary i.e. if the retiree last earned Sh100,000 per month then a monthly pension of between Sh60 -Sh80k is sufficient to live a good retired life.

From a survey done by Zamara that comprised over 60,000 members of retirement benefits schemes, it was found that only seven percent will have adequate pensions when they retire. (Dramatic pause to allow that stat to soak in) The other 93 percent will be struggling to make ends meet during their retired life if they don’t have other retirement savings. You could be among the 93 percent. Below I outline a simple thing you need to do now to change the situation or bridge the pension adequacy gap.

Set a retirement goal: At the beginning of every year, we set ourselves a few goals for the year and these may range from something that gets your adrenaline rushing like bungee-jumping off a cliff to something that is relaxing to the mind, body and soul like sitting at a beach and reading 3 books.

There is a rule of thumb that says if you want to succeed, you need to set goals. Setting goals gives you the focus and direction to succeed. This rule of thumb is applicable to everyone and for any purpose. Imagine trying to open-up a business and you have no goal set. You will not be sure on whether having profits of a few thousands or a few millions is successful.

There is merit in setting a goal. The goal should be designed to be SMART i.e. Specific, Measurable, Attainable, Relevant and Time bound.

For a recently graduated 25-year-old like me, who also started working, thinking about retirement is nowhere near my list of accomplishments. But subconsciously I have already set a retirement goal. This is to lie down on a beach bed in my beach house sipping a martini with my wife next to me as we listen to the tides hit the shore.

To ensure that I meet this goal, I need to save for my retirement so that I can afford to buy that martini and the beach house. As you think of your retirement goal, think of how you are going to achieve it and the answer will be start saving or investing.

Here’s a simple tip on saving for retirement if you are in your mid-20s, save between one percent and 15 percent of the salary you earn.

The magic number on how much to save for a mid-20 year old, lies anywhere between 11 percent and 15 percent of your salary to get you to your sufficient pension at retirement.

It’s always better to consult a financial adviser or pension expert to get more personalised recommendations, but if you are not able to or don’t want to then ensure you are setting aside at least 10 percent.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

I Choose Life unveils programme to empower one million young people : The Standard

May 16, 2019
LETTERS: The looming challenge of pension adequacy

LETTERS: The looming challenge of pension adequacy

June 12, 2019

Subscribe.

Trending.

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025
Safaricom launches B Live, a first of its kind service allowing customers to buy internet access by the hour, offering flexible one hour three hour and six hour bundles for students creators and professionals.

Safaricom Expands Digital Options with Innovative B Live Product That Adapts to Different Usage Habits

August 21, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025

Student Leaders Slam HELB and Ministry Over University Funding Delays

August 1, 2025
Through new mobile-based loan products, Safaricom is expanding credit access for Kenyan small businesses, targeting informal traders and merchants with fast, digital financing tools.

Safaricom Deepens MSME Lending with New M-PESA Credit Suite

July 14, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1804 shares
    Share 750 Tweet 439

Recent News

Tourism CS Rebecca Miano announces new measures at Maasai Mara, including ranger deployments, clearer signage, and public education following a viral tourist incident.

Government Tightens Maasai Mara Rules After Viral Tourist Clip

August 26, 2025

Co-op Bank Empowers Over 249,000 Kenyan MSMEs with Loans and Training

August 21, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF