Planning for retirement is one of the most important financial decisions you’ll make, yet it’s often overlooked. An income replacement ratio of at least 70% is recommended, to maintain your lifestyle comfortably after retiring.
In simpler terms, this means your retirement income should ideally be 70% of what you earned during your working years.
Unfortunately, in Kenya, this figure falls below 40% for most retirees. This leaves many struggling to cover even the basics, let alone enjoy the retirement they dreamed of.
The gap between what retirees need and what they actually receive is alarming. It forces many to make difficult choices like downsizing drastically, returning to work, or relying on family for financial support.
Also Read: Unlocking Home Ownership: How to Support Your Retirement Goals
None of these scenarios align with the vision of a comfortable retirement. And the primary reason for this? A lack of early and deliberate planning.
To avoid this fate, the solution lies in starting early. Retirement planning isn’t just for those nearing the end of their careers. It’s for everyone, even those in their early 20s.
By contributing to a pension fund consistently, even small amounts, you can significantly close this gap over time. The magic of compound interest means your savings will grow exponentially, giving you a financial cushion when you need it most.
This is where NCBA comes in, offering practical and accessible pension solutions designed to help people safeguard their golden years.
Whether you’re in your 20s and just starting out or closer to retirement age, NCBA’s pension products can guide you toward achieving that essential 70% income replacement ratio. The earlier you start, the easier it becomes to ensure you’ll retire with dignity and financial independence.
Don’t let retirement sneak up on you. A 70% replacement ratio is achievable with the right tools, discipline, and a commitment to planning. Let NCBA help you bridge the gap and create a retirement that feels rewarding.
