CHANGE OLD AGE NARRATIVE

It's possible to start investing and saving in 20s

Retirement Benefits Authority report indicates that barely 20 per cent of Kenyans save for retirement.

In Summary

•Youths don't save because they believe by the time they are out of active employment they will be alive.

•It's high time Kenyan youths changed their old-age narratives and started saving to help them when they are not working.

The Retirement Benefits Authority organises annual open days to the public about pension schemes
The Retirement Benefits Authority organises annual open days to the public about pension schemes
Image: FILE

Kenyans are living longer after their retirement age of 60 years than was the case years back. Saving is key.

Soon, hundreds of thousands of retirees currently in their 40s or 50s will be wallowing in old-age poverty and sickness unless they save enough to keep themselves afloat.

Demographers argue that the longevity of life in Kenya has been on the rise since 2000.

Today unlike in the past when parents used to rely on their children to provide support in old age, most of the children own houses in urban areas contrary to the concept of the old term.

A Retirement Benefits Authority report indicates that barely 20 per cent of Kenyans save for old age, which means that as life expectancy continues to increase a large number of people will not be able to access better treatment or escape old-age poverty.

Youths don't save because they believe by the time they are out of active employment they will be alive.

There are many things parents expect them to do for example to help in educating their siblings to have a better future.

However other youths have a small level of disposable income to allow them to save for retirement, or others don't have money at all due to unemployment to save for their pension.

Unless something is done, long life expectancy may spell disaster in future. This is because meagre salaries paid to employees and the government's attempt to shift them from defined contribution schemes change the local pension landscape.

It's high time Kenyan youths change their old-age narratives and start saving to help them when they are not working.

They should stop thinking that their children will take care of them in old age because at the time they shall have acquired retirement age, children will also be having other burdens to deal with.

It's a government obligation in collaboration with non-governmental organisations to create an enabling where youths are able to realize their potential.

Living in an environment where businesses thrive, someone is paid well, no heavy taxation then saving for the future will be thing of the past.

Individuals talent is nurtured well. I see millions saved and invested for the future.

Having a mind of a better tomorrow is a weapon to fight this gigantic challenge, proper planning even with the little we have will help solve series of problems at our old age.

Aloys Michael Nyabwanga Communication and Media technology student at  Maseno University

 

 

Edited by Kiilu Damaris