Retirement Planning
Retirement planning is the structured process of building income for your future self the version of you that will one day stop working but will still need to live.
In simple terms: when your salary stops, your income does not. Unlike short-term savings, retirement planning is designed to provide long-term financial continuity and independence so you are never financially vulnerable in the years that matter most.
Will your lifestyle outlive your career?
In Kenya, we are taught how to work hard for money. We aren't always taught how to make sure that money keeps working when we stop.
Financial Independence
Never rely on a monthly paycheck to survive.
Lifestyle Continuity
Keep the comforts you've worked decades to build.
Dignified Autonomy
Reduce the burden of dependence on children or relatives.
Absolute Peace
Sleep better knowing your future self is already paid for.
"Retirement planning isn't about age; it's about time."
Why Retirement Planning Stands Out
A pension is not just a savings account. It is a structured, tax-efficient, professionally managed engine for long-term income.
Lifetime Income Potential
A pension allows you to convert your accumulated savings into a monthly income for life — so you never outlive your money.
Triple Tax Efficiency
Contributions qualify for tax relief, investment growth is tax-free, and a portion of withdrawals is tax-exempt. Your money works harder inside a pension than almost anywhere else.
Compounding Growth
Your contributions are invested and grow through compound interest over time. The earlier you start, the more powerful the compounding effect becomes.
Flexibility
You can contribute regularly or adjust your contributions based on your income. Whether you earn a salary or run a business, the plan works around you.
Portability
Your pension remains yours even when you change jobs. You do not lose what you have built when your employment changes.
Estate Planning Built In
You can nominate beneficiaries to receive your accumulated funds, ensuring your retirement savings become part of your legacy.
How It Works
Four steps that turn today's contributions into tomorrow's income.
You contribute regularly
Set a contribution amount that works for your income — monthly, quarterly, or annually.
Your money is invested
Contributions are placed into professionally managed funds designed for long-term growth.
It grows through compounding
Returns are reinvested, and over time, your fund grows significantly through the power of compound interest.
You access it when you need it
Funds become accessible upon retirement, disability, emigration, exit from employment, or death.
Plan Structures
Whether you are employed, self-employed, or an employer — there is a structure for you.
Individual Pension Plan
Open to Everyone
A personal pension you set up and fund independently. Designed for anyone who wants to build retirement income on their own terms — whether employed, self-employed, or running a business.
- Open to anyone aged 18 and above
- Flexible contribution amounts and frequency
- Professionally managed investment funds
- Fully portable — stays with you across jobs
- Beneficiary nomination available
Best suited for
Entrepreneurs, self-employed individuals, freelancers, and employed professionals who want a personal retirement structure outside of or alongside an employer scheme.
Employer Pension Plan
Workplace Retirement Structure
A retirement plan set up by an employer for their employees. Employer contributions may be included, effectively giving employees additional retirement funding on top of their own contributions.
- Employer contributions may supplement your own
- Structured and administered at workplace level
- Professionally managed funds
- Member contributions are portable on exit
- Tax relief applies to both employer and employee contributions
Best suited for
Employed professionals whose employers offer a pension scheme — and employers who want to provide structured retirement benefits for their teams.
Tax Advantages
At every stage — contributing, growing, withdrawing
When you contribute
Tax relief on contributions
Contributions reduce your taxable income, giving you immediate tax savings every time you save.
While your money grows
Tax-free investment growth
Returns earned inside the pension — interest, dividends, capital gains — are not taxed as they accumulate.
When you withdraw
Partial tax exemption
A portion of your retirement withdrawal is tax-exempt, meaning you keep more of what you built.
Retirement Income Options
Lump Sum
Receive a portion of your accumulated fund as a tax-advantaged lump sum at retirement.
Monthly Income (Annuity)
Convert your fund into a guaranteed monthly income for life — predictable, stable, and reliable.
Income Drawdown
Keep your fund invested and draw from it flexibly over time, maintaining growth potential while accessing income.
Who Is This For?
The Cost of Starting Late
Compounding is the most powerful force in retirement planning — but it requires time. The same Kshs. 5,000 monthly contribution produces dramatically different results depending on when you start.
Illustration assumes an average annual return of 10%. Actual returns will vary based on fund performance.
Start at 25
35 years of contributions
Kshs. 5,000/month
~Kshs. 14.7M
at retirement (age 60)
Start at 35
25 years of contributions
Kshs. 5,000/month
~Kshs. 6.1M
at retirement (age 60)
Start at 45
15 years of contributions
Kshs. 5,000/month
~Kshs. 2.1M
at retirement (age 60)
Risks Retirement Planning Helps Manage
Retirement is not one risk — it is four. A structured plan addresses all of them.
Longevity Risk
The risk of outliving your money. A pension structured as an annuity pays for life — however long that is.
Inflation Risk
The risk of your savings losing value over time. Pension investments are designed to grow above inflation.
Income Risk
The risk of losing income when you stop working. A pension replaces that income with a structured stream.
Dependency Risk
The risk of depending on family or others in old age. Financial independence protects both you and them.
Common Mistakes to Avoid
Starting too late
Every year you delay, you lose the power of compounding. Starting at 25 versus 35 can mean the difference of millions at retirement.
Assuming NSSF is enough
NSSF provides a baseline — not a retirement income. On its own, it is unlikely to sustain the lifestyle you are building today.
Not contributing consistently
Irregular contributions break the compounding effect. Consistency — even with small amounts — outperforms large irregular contributions.
Ignoring inflation
The cost of living in 20 years will be significantly higher than today. Your retirement plan must account for this, not just today's expenses.
Frequently Asked Questions
Everything you need to know about Retirement Planning.
Real Talk
Retirement is not about being rich. It is about not being vulnerable.
One day, you will stop working.
The question is: will your money still be working for you?
Retirement planning solutions are subject to the regulations of the Retirement Benefits Authority (RBA), applicable tax laws, and provider terms and conditions. Please speak to Mama Bima Kenya for a personalised retirement plan and full benefit illustration based on your income, age, and goals.