Nairobi — Seven in 10 Kenyans are not saving enough to enjoy a comfortable retirement, with family expenses, low incomes and debt repayments making it difficult to put money aside, a new study by SanlamAllianz Kenya has found.
The study, which was released today, found that 44 per cent of respondents cited family expenses as their biggest barrier to saving, while 37 per cent pointed to low or irregular income.
It also found that 62 per cent said supporting dependants reduced the amount they could save.
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SanlamAllianz Kenya Chief Executive Officer (CEO) Jacqueline Karasha said access to financial services must translate into long-term financial security.
"Retirement should be a stage of life that offers dignity, independence and choice, not one where people are forced to scale back their ambitions," she said.
The study also found that 53 per cent of respondents who left a job or business with retirement savings withdrew at least part of the money, while 26 per cent took all of it.
More than half, or 53 per cent, later regretted the decision.
Karasha said people needed more than awareness of the importance of saving to protect their retirement funds.
"As an industry, we have a responsibility to make it easier for people to stay invested, provide relevant guidance when key decisions arise, and design solutions that reflect the realities of people's lives," she said.
The report found that only 29 per cent of respondents knew how much monthly income they would need in retirement, while 53 per cent had no savings plan to cover medical costs after leaving work.
It also found that 45 per cent had lost money or personal information through digital financial scams.
SanlamAllianz Investments Managing Director Jonathan Stichbury said retirement planning should focus on the income people will receive, not just the amount they save.
"Retirement security is ultimately not about the balance someone accumulates during their working years, but whether those savings can provide a reliable income throughout retirement," he said.
SanlamAllianz Kenya Group Chief Executive Officer Dr Nyamemba Patrick Tumbo said Kenya had an opportunity to improve retirement preparedness while its population remained relatively young.
"Through the SanlamAllianz Kenya Retirement Benchmark, we aim to measure progress, stimulate dialogue and support the decisions needed to improve retirement outcomes for future generations," he said.
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The study was based on an online survey of 300 people, including working adults aged 20 to 64 and retirees. SanlamAllianz said it would repeat the survey annually to track changes in retirement preparedness.
