Thinking about years without a monthly salary/income can be depressing. But the truth is that slowly and surely, you’re heading there. Retirement is inevitable. Preparing yourself in advance will help relieve stress when you’re not working. Pension schemes offer an opportunity to save for the future. The schemes provide different plans to suit individuals working in all sectors of Kenya’s economy. Retirement Benefits Authority (RBA) ensures that your savings are safe by regulating and supervising the establishment of pension schemes in Kenya. The following are the 7 best pension schemes in Kenya.
1. Mbao Pension Plan
Mbao pension plan mainly targets self-employed, informal sector, and small-medium sector workers. Individuals can contribute through Flexi digital systems.
You can make payments through mobile money and bank transfers. Participants can contribute from every corner of the country.
The plan champions the inclusivity of all Kenyans in financial matters. It accommodates even low-income earners.
The payments are voluntary and don’t charge penalties on skipped payments.
Simple and easy to use, and you can make payments on the phone.
Since many Kenyans work in the informal sector, the plan provides an excellent option to secure their future.
2. National Social Security Fund (NSSF)
NSSF is a statutory scheme. The plan mainly covers workers in the formal sector. Employers contribute KShs 200 with similar amounts from the employee to the program monthly. However, it’s not mandatory.
NSSF Act No. 45 of 2013 stated that the fund should offer a pension in case of disability, survivor benefits, and retirement.
You’ll be paid total retirement benefits as a lump sum.
In November 2019, NSSF launched the Haba Haba savings plan to cater to self-employed Kenyans in the informal sector. Members save Kshs 500 per month and can withdraw up to 50% savings if they contribute consistently.
The benefits of Haba Haba include:
- You can register as a member on the phone by dialing *303#
- Contributions through Mpesa are accepted
- Members can view their statements on the phone
- It’s a safe retirement plan
- You can pay for family and friends.
3. Britam Individual Retirement Plans
The plans ensure that you can keep your lifestyle and have a consistent income in the future.
Types of savings plans depend on the mode of payment upon retirement. They are:-
- Pension Plan in which a third of benefits gets paid as a lump sum and the remaining paid as regular monthly income or withdrawn after ten years upon retirement.
- Provident Plan in which a lump-sum payment of all accumulated benefits is paid after retirement.
Savings accrue compound interest. You’ll be paid accumulated benefits according to your plan adopted during policy inception.
The two plans provide employed and self-employed individuals without an occupational scheme an opportunity to save regularly for retirement.
Also, organizations with less than ten employees have an opportunity to set up a retirement plan for their employees.
The contribution per month is Kshs 500 without an upper limit.
The company will send your savings statements at the end of the financial year.
The contributions are flexible; you can change the monthly savings amounts and frequency of savings to march your current financial situation. Also, changing your employment doesn’t affect the scheme.
4. Jubilee Insurance Personal Pension Plan
The savings plan allows individuals not in group schemes to save, and you can defer, stop or suspend your contributions.
Through the plan, employers contribute to their employees. The funds’ minimum guarantee rate per annum is 4 percent on investment.
To join the plan, you complete an application form and send it to the Jubilee offices. You attach a national ID copy and KRA pin certificate.
The personal pension plan is flexible; you can increase or decrease your monthly contributions.
Upon retirement, you can buy an annuity with the accumulated benefits or withdraw accrued benefits as a lump sum.
In case of death, your dependants get paid the total benefits accumulated. Also, the plan takes care of sickness and disability. Interest continues to accrue on the fund until the date of payment.
You can withdraw the accumulated benefits upon contract termination even before retirement age.
5. UAP Old Mutual Personal Pension Plan
The plan will help you transition from working to long, happy, and sustainable retirement.
You can change your contributions to fit your current situation by giving a thirty-day notice. The pension scheme doesn’t depend on your current employer. You can change employment and continue contributing.
Upon retirement, you can get total accumulated funds on a lump sum or regular payments.
Anytime you can access contributions statement, and at the end of a financial year, the company sends benefits statements to members.
Your savings accrue investment income annually. Also, no penalties on withdrawal, and the retirement scheme is exempted from taxation.
6. Zamara Vuna Pension Plan
The plan will help you build retirement savings. The contributions are flexible, taking care of your budget needs. You can choose an investment plan and switch later to suit your dynamic profile.
The scheme offers retirement benefits options like:
- Annuity payments
- Lump-sum payments
- Income drawdown that is structured payments over specific payment
You can download the Zamara app to view savings and benefits statements.
Members aren’t penalized for withdrawal, and in case of death, your dependants will get the total accumulated funds.
Also, if you leave a retirement scheme or employment, you have an option of transferring benefits to the Vuna Pension Plan.
7. APA Individual Pension Plan
APA pension plan provides a long-term investment scheme allowing you to establish a sizeable fund. The monthly contributions earn interest rates.
Upon retirement, APA pays the accumulated benefits according to the policy you chose on inception.
The minimum guaranteed interest on investment is 4% per annum. Plus, it offers a returns bonus. The company bears the risk-on investment.
The plan is flexible on contributions and withdrawal—also, no registration and administration fees.
The table below indicates the contact numbers of the pension schemes. Get in touch with them for more information:
|Pension Scheme||Contact Number|
|Mbao Pension Plan||0729887587|
|National Social Security Fund||0202729911|
|Britam Individual Retirement Plan||0703094000|
|Jubilee Personal Pension Plan||0709901000|
|UAP Old Mutual Personal Pension Plan||0202850000|
|Zamara Vuna Pension Plan||0204969000|
|APA Individual Pension Plan||0709912777|
Other Good Pension Schemes in Kenya
Below is a list of other good pension schemes to consider in Kenya:
- Benefits at work personal pension scheme-0700688248
- Amana personal pension plan-313356
- Chancery personal pension plan-2711555
- Apollo insurance Co. Ltd. Individual pension arrangement-223562
- CIC jipange pension plan-2823000
- Commercial bank of Africa individual pension plan-2884000
- CPF individual pension scheme-2248408
- Cytonn personal retirement benefits scheme-0709101000
- Dry Associates personal provident plan-4450520
- Enwealth diaspora and expatriates retirement fund-8160312
- Enwealth personal pension scheme-8160312
- Fahari retirement plan-4969000
- GA life personal provident plan-271633
- GA life personal pension plan-271633
- Gencap individual pension plan-0709185000
- ICEA Lion individual retirement benefits scheme-221652
- Kenindia assurance Co. Ltd. personal pension plan-316099
- Kenya alliance insurance Co. Ltd. individual retirement benefits scheme-241626
- Madison insurance personal pension plan-2721970
- Wakili personal retirement benefits scheme-0709087000
- Stanlib individual pension plan-3268508
- Pioneer assurance individual retirement benefits scheme-2220814
- Pan Africa Life Personal Pension-247600
- Octagon personal scheme-0708726830/0732343595
- The Monarch personal pension plan-310048
- The Kenya orient individual pension plan-2728603
- The heritage all company Ltd. Individual retirement benefits scheme-3749118
- NTISL personal pension plan-2828356
- Mwavuli individual pension plan-2220099
- Minet individual pension plan-4974000
- Mercantile personal provident fund scheme-2243681
- Mafao Fund-703071000
Pension schemes have developed strategies to take care of workers in all sectors. Digital modes of payment allow you to pay from anywhere in the country. The rates per month are affordable and flexible. You’ve no reason to be left behind in securing your future. Save with a pension plan of your choice and secure your future.