Retirement Planning

Your retirement is your responsibility; it is up to you to make it a worthwhile experience.

Retirement planning is preparing for life after an active work life. A retirement plan should start long before one retires, actually, it should start from the time one starts working.

In some cases, retirement is anticipated for instance retirement from employment or active farming or business life due to old age while in other instances it is abrupt due to health issues or layoffs.

Whichever the case, retirement is a major life transition and any big change positive or negative can be a source of stress.

Retirement results to the following changes;

Psychological change-Retirement can cause loneliness, boredom, feelings of uselessness and disillusionment. Without the daily routine and social contact of a workplace, many people find themselves feeling alone and disengaged from their usual social circle.

Financial change– Getting used to consistent pay or income for years gives a form of financial security. Upon retirement, one starts spending the accumulated savings and depending on passive income.

Lifestyle change– On retirement, you will have extra eight hours per day which is very different from what was used to.  Majority of Kenyans move to rural areas on retirement, this exposes them to an extremely different environment that is foreign to them.

So how do you plan for retirement?

  1. Join a pension scheme

Join a pension scheme at your workplace and contribute as much as possible. If you are not in employment, have a savings account where you save regularly.

    2. Be a disciplined saver

Saving refers to money put aside for future use rather than spending it now. It is postponing an impulse purchase for future purchases.

It is good to note that you do not save from what is left after spending but you save before spending. The easier way to save regularly is by signing standing orders and check-off to a savings account that cannot be easily accessed.

3. Be a good investor

There are several investment options in Kenya which include;


When you buy shares in a public or private company, you gain from higher re-sell price or receive dividends at the end of a company’s financial year.

  1. Fixed Deposit Accounts

Fixing money with a financial institution for a certain period of time earns an investor interest.

  1. Agribusiness

Investing in Agriculture through mechanization and modern farming techniques is a capital intensive investment but risks are minimal with high returns.

  1. Sacco contributions/non-withdrawable deposits

Regular deposits into Saccos non-withdrawable deposits helps grow deposits for future financial commitment with ease

  1. Land and Property

There is a boom in the real estate industry in Kenya with the majority of residents and non-residents looking to invest in land and property. Land is a long term asset that appreciates in value over time and therefore likely to give more return in the long run.

  1. Invest in Business

Entrepreneurs provide solutions in form of products or services while consumers pay for them to solve their problems.

  1. Invest socially today

Start nurturing new relations outside your work environment. Despite best intentions, friendships based in the workplace often fade once you leave. Be part of the society and community through participating in community and church activities, joining and forming chamas to create a good social base for association after retirement.

  1. Develop your passions now

Start engaging in areas you are passionate about now because this is likely to keep you busy and earn your income at retirement.  These include preaching, supporting youths, farming, consulting, counselling and the like.

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