Latest News

RBA urges journalists to save for retirement

Retirement Benefits Authority(RBA) has called on journalists to join pension schemes to start saving for their future by contributing to earn retirement benefits.

RBA urged journalists to save, whether they are in formal employment or self-employed, adding that most of the schemes that are set up by the employers usually deduct a very low percentage of basic salary.

Addressing journalists at Three Steers Hotel in Meru County during a media sensitization forum, the RBA Corporate Communications officer Mr Alexander Mugambi Kaburu said that by joining the RBA schemes journalists will be able to cater for themselves and their families when they retire especially in old age.

“We asked most of our beneficiaries what they care about and most said their health, which means your health is very important. We need to learn the art of saving to be in a position to take care of ourselves in the future especially when we retire,” Mr Mugambi noted.

Decrying a low number of journalists enrolled Mugambi pointed out that it was the right time for those working in the fourth estate to learn how to start saving and secure their sunset years.

Mugambi complained that many Kenyans have been retiring to poverty due to the lack of savings and called media owners and other employers to come up with saving schemes.

He additionally noted that NSSF money earns compound interest and is free from tax when one is earning and also when one retires.

The communication officer added that the schemes also allow members to save for post-retirement medical cover while still in service, adding that those are key developments one should learn about to make informed choices about sustaining oneself in retirement.

According to data from the Kenya National Bureau of Statistics (KNBS), there were about 17.4 million people in the formal and informal sectors as of the year 2020. However, about 13.9 million Kenyans have no form of retirement savings scheme, and the majority of them are in the informal sector.

According to a report given to media earlier this year by RBA, the current number of individuals actively contributing towards a retirement benefits program was approximately 3.5 million, which is just 25 percent of the labor force.

“Out of this number, approximately 800,000 contribute to both the National Social Security Fund (NSSF) and the private occupational and individual schemes, with 2.7 million contributing only to NSSF,” Jackson Nguthu, RBA official had been quoted saying.

The data presented also showed low contribution rates, such as the KSh400 ($3.21) channelled to the NSSF, short contribution periods, and early withdrawals from schemes.

Among the achievements of the Retirement Benefits Authority are an assets fund value of Sh 1.68 trillion and a fund value proportion to GDP of 12.63% with 1,075 registered pension schemes, with the authority aiming to achieve 30% pension coverage with an asset base of 2.4 Trillion Shillings by 2024.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button