More than 90 per cent of Kenyans are not planning sufficiently for retirement and those in pension plans make contributions too low to cover them in their sunset years, financial services firm Alexander Forbes has said.
Alexander Forbes Group chief executive officer Sundeep Raichura said the situation is compounded by analogue management of pension plans dampening customer experience for contributors and claimants.
“We live in a digital world yet the pension industry in this country still operates with procedures full of paper work and the take up for pension products is way below ten per cent .The government needs to create plans that can compel people to save for their retirement otherwise many people are going to sleep walk into their retirement and wake up when it is too late,” Mr Raichura said.
Kenyans also change employers many times and each time take away their savings further reducing their take home at retirement.
The trend according to Alexander Forbes leaves many retirees with only 30 per cent of monthly earnings compared to their salaries just before retirement.
The financial service provider unveiled two digital solutions geared at pension management.
The eboard solution for retirement scheme trustees and an enhanced online functionality for members of retirement benefits schemes are part of the firm’s new strategy to increase customer experience with all her 250 client expected to be on board.
Forbes said the initiative is expected to boost pension planning and management as well as allow individuals to project their earnings after retirement and plan their saving lifestyles.
The new software is a customized solution for pension funds developed in conjunction with Software Technologies Limited, is an end to end solution designed to help Trustees in corporate governance and in running the affairs of their retirement benefits funds cost effectively.
The eboard will assist trustees to comply with various statutory authorities and reduce the burdens of audits by maintaining all compliance documentation electronically.
Members of pension funds will also access their benefits online and use interactive tools for budgeting, financial and retirement planning as well as insurance needs analysis.
The tools will enable “what if” scenarios to be tested by pension fund members and by enabling better planning which will lead to improved benefit outcomes for members.
“Through our own online platforms, we want to empower retirement fund members to take charge of their financial destinies and also be able to choose and switch between various different investments portfolios”, Mr Raichura said.