A tailor-made retirement savings plan for individuals who want to retire with financial security: build your fund through periodic contributions into an interest-bearing fund with guaranteed returns, and let compounding work for you.
Personal retirement plans
What it is
This is a tailor-made retirement savings plan for individuals who want to retire with financial security. The plan enables you to build a retirement fund by making periodic contributions into an interest-bearing fund with guaranteed returns. Let the power of compounding interest work for you.
This plan has two retirement savings options that will make sure you have the income you need as you head into retirement. The key difference between the two is the mode of payment at retirement.
a. Pension plan
A third of the accumulated benefit will be paid as a single lump sum amount and the remaining two-thirds paid as a regular income for life upon retirement. Alternatively, accumulated benefits can be withdrawn from the fund after a minimum of 10 years.
b. Provident plan
The accumulated amount will be paid in one single lump sum upon retirement.
Your savings will grow exponentially over time while earning interest. On attainment of your selected retirement age, the insurer will pay your accumulated retirement benefits in accordance with the option selected at the inception of the policy.
Why invest & key benefits
Why invest in personal retirement plans
- It gives you the power to capitalize on early savings—commencing your future fund at an earlier stage allows for an extended growth period.
- It enhances your long-term capital—allocating substantial funds today results in a more robust financial foundation for the future or retirement.
Key benefits of the funds
- Tax relief on contributions – Enjoy tax-deductible contributions up to KSh 20,000/month or 1/3 of your income, reducing your PAYE.
- Tax-free investment growth – Earn 100% tax-exempt interest, maximizing your savings.
- Compound interest growth – Benefit from faster fund growth through compounding.
- Guaranteed returns – Minimum 5% annual interest with protected capital.
- Flexible contributions – Contribute from as low as KSh 2,000, anytime, any frequency.
- Portable pension plan – Keep your plan even when you change jobs.
- Pension-backed mortgage – Access up to 60% of your savings to buy or build a home.
- Flexible payout options – Choose lifetime pension income or a lump sum payout.
- Family protection – Your full savings are paid to beneficiaries in case of death.
Policy features
- Flexible contributions: Contributions can be fixed or varying; made monthly, quarterly, semiannually or annually.
- The minimum contribution under the policy is KES 500. There is no upper limit on contributions.
- The insurer will provide you with a personalized individual retirement plan account and keep track of your savings and interest earned.
- A personalized statement of savings will be sent to you at the end of each financial year or any other time on request.
- A member can access accumulated funds at any time subject to the prevailing regulations.
What if?
You pass away before retirement
Whether you’re contributing personally or via an employer, the money you save remains 100% yours, even if you change jobs or take a career break.
You want a projection?
Start with as little as KES 500 per month. You can adjust your contribution amount or payment frequency anytime—monthly, quarterly, half-yearly, or annually.
Request a quote for a personal retirement plan, or speak to us about how much to contribute for your retirement goals.
