Kenyans are retiring with only 22 per cent of their pre-retirement salaries.
Earlier studies show that Kenyans cannot maintain their previous lifestyles on retirement with the lower income.
Many end up retiring in abject poverty due to inadequate pension.
Newly retired Kenyans are surviving on a fifth of their working life income, according to retirement financial services firm Alexander Forbes.
Several market studies conducted in the past by the Retirements Benefits Authority (RBA) and Alexander Forbes show that Kenyans were retiring with only 22 per cent of their pre-retirement salaries.
However, Alexander Forbes executive director James Olubayi on Wednesday said that a recent study of the income replacement rate for members of the Alexander Forbes Retirement Fund indicated a much higher and “commendable” average rate of 53 per cent.
“As trustees of the fund, our long-term objective is to ensure that members retire with at least 60 per cent of their pre-retirement salaries through the fund investment strategy as well as member education and communication portals,” Mr Olubayi said.
Earlier studies show that Kenyans cannot maintain their previous lifestyles on retirement with the lower income. Many end up retiring in abject poverty due to inadequate pension.
Speaking at the event, the fund chairperson Lucy Kambuni urged Kenyans to prepare for retirement by saving early.
“It’s not about how much money you make, but how much money you save, how hard it works for you and how many generations you keep it for,” she said.
The officials spoke during a briefing for over 100 employers, who are members of the retirement fund, on the investment environment and the outlook for the market in the current year.
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