Have you envisioned your ideal retirement? The day you start working is the day to commence planning for that dream retirement. If you haven’t begun yet, the perfect time is now. 

Starting your retirement planning early is like planting a financial seed that will grow into a tree over time. Early planning can significantly boost your retirement savings through the magic of compound interest.

In a world of changing career paths and economic uncertainties, early retirement planning is your shield against the unknown. It’s your assurance that no matter what life throws your way, you’ll be financially prepared. Whether you dream of a serene retirement by the beach or want to maintain your standards of living, starting early ensures you’re ready for the unexpected and can enjoy the fruits of your labour when the time comes. 

“To begin planning, the time is now. If not yesterday, then now, with a view of you could work until you are 60 years old,” advises Jacqueline Karasha, Chief Sales Officer at Sanlam Life. Retirement planning is all about securing a future that mirrors your working years’ standards, covering finances and medical needs.

In Kenya, retirement is legally capped at 60 years, with early retirement an option at 50. Shockingly, a significant number of Kenyans, about 14 million, lack a retirement savings scheme, according to the Kenya National Bureau of Statistics. This is attributed to the prevalence of informal sector employment. And with longer lifespans, the need for financial provisions extending beyond 60 is paramount.

“Our aged are living as the poorest when you rank us globally,” says Jacqueline, highlighting the urgency to address this concerning reality.

Healthcare becomes a pressing concern in retirement, but accessing insurance is a hurdle, especially for the elderly. Underwriters routinely blacklist the elderly as high-risk and restrict their coverage. Retirees are encouraged to maintain liquidity for unforeseen medical expenses. The Retirement Benefits Authority (RBA) in Kenya is mandated to steer the retirement benefits industry, but many retirees still fall into poverty due to healthcare expenses. This informed Sanlam’s decision to establish a post-retirement medical cover that allows individuals to set aside an extra 2% (or more) of their income above their pension contribution. The key benefit is that, like your pension contributions, this extra saving also comes with tax advantages, providing financial relief and benefits like those associated with traditional pension products.

With many people changing jobs constantly, there is a risk of forgetting to claim pension benefits. Sanlam’s innovative digital IPP platform ensures you don’t miss out on claiming your pension benefits. The platform’s Combinator feature helps consolidate pensions accrued throughout your career, providing a clear and accessible view of your retirement savings.

Jacqueline’s call to action is compelling and straightforward: “Every cent and every second counts in making life in retirement smoother. Start with the little you have. The little that you have, start, as it will make a difference through time and the power of compounding.” Take that first step towards your dream retirement with Sanlam. Your future self will thank you.