Local investment bank Genghis Capital has ventured into the retirement benefits industry with the launch of two products motivated by the low pension’s coverage in the country.
The investment bank has launched a solo pension plan in addition to an income draw-down plan which enables retirees to access their retirement benefits in regular intervals during their retirement years.
The firm has anchored the launch on rigorous efforts by the Retirement Benefits Authority (RBA) to deepen the penetration of pension plans in the country.
“The increased urbanization has led to disintegration of the traditional practices that saw the younger generation take care of the old and thus it’s imperative to have retirement savings that will sustain you during your retirement years,” said Maurice Oduor, Senior Manager at Genghis Capital.
“We are working on automating our products to ensure anyone in any part of the country can join the Gencap individual pension plan at ease from the mobile phones and at the same time enjoy above average income through a professionally managed fund,” added Genghis Product Development Officer Alice Kamau.
Presently, only 20 percent of the working population owes a pension plan while the dependency of retirement funds is weak with a recent study by Zamara Actuaries placing the country’s pension adequacy rate at 34 per cent.
The 2019, Finance Bill prompted all schemes to include income draw-down options for members in a means to preserve the benefits of retirees with the previous regime having paid out returns in one go.
