top 4 best Pension Plans In Kenya
This article is about top 4 best Pension Plans In Kenya. A retirement plan is a type of investment in which both employers and employees contribute money to a pool of funds to receive defined benefits upon retirement. Most people end up living miserable lives after retirement. This is the result of not planning for what lies ahead.
The surest way to live a decent life after retirement is to invest in a retirement plan.
Anyone earning an income can join a pension plan or scheme.
best f Pension Plans In Kenya
There are four types of pension plans in Kenya.
Public service pension plan
It is a defined contribution plan where the government and employees contribute to the plan to fund retirement benefits. The scheme is intended for civil servants. The scheme is regulated in accordance with the Pension Benefits Act.
Individual pension plan
It is a type of retirement plan set up by an individual to make contributions to retirement savings. It is a good pension plan for those working in the informal sector. This is due to flexible savings plans that are tailored to those working in the informal sector or those who are self-employed.
Occupational pension scheme
The plan is established by an employer who pays contributions on behalf of employees towards the provision of retirement benefits. It is registered with the Pension Benefits Authority and the Kenya Revenue Authority. Employees under this scheme will receive their funds upon retirement when they resign or are made redundant when they are unable to work due to medical issues/conditions or when they move to another country.
Under this scheme, you can only fully withdraw your funds after retirement. In the event of a death or medical emergency, beneficiaries or family members are entitled to full access to the funds.
It is a type of retirement plan that allows multiple independent employers to participate in a single retirement plan. The scheme is convenient and hands-free in nature. This explains why it is popular with most organizations in the country. The scheme improves overall benefits and returns for both employers and employees as it pools the retirement investments of multiple employers.