RBA steps up education as uptake remains poor


Perhaps, the biggest myth of all is that young people perceive retirement as a faraway affair and believe that they still have time. PHOTO | POOL

The Retirement Benefits Authority (RBA) has stepped up consumer education on retirement planning amid low pension uptake among working Kenyans.

The regulator is looking to hire consultants to facilitate retirement planning seminars across the country in a bid to bring more people into the pension sector.

Data from the authority shows penetration among working class is about 21 percent, despite the overall growth in pension assets.

“The authority would like to contract the services of three reputable consulting firms with qualified retirement planning facilitators during its retirement planning seminars,” said RBA in a notice.

The sector comprises over 1,067 active retirement benefit schemes and a membership of about 3.4 million.

Consultants will be expected to prepare training materials and facilitate one-day seminars to groups of at least 100 members in Nairobi and at least 50 members across the other 46 counties.

The syllabus during seminars will cover investment and personal financial management, attitudes to a new lifestyle in retirement as well as health issues.

Kenya’s economic recovery from the Covid-19 shocks saw an improved performance of the equities market, which positively impacted the pensions sector.

Industry data shows total assets grew by 10.6 percent to Sh1.54 trillion in December 2021, from Sh1.39 trillion the year before.

Over the recent past, the authority has encouraged the introduction of several digital products targeting informal sector workers to bring in more people to save for their sunset years.

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