Retirement Plans in Kenya: While most organisations have provided for retirement benefits schemes that pay substantial amounts when leaving service or retirement, management of these amounts in retirement as well as the social and psychological preparedness for retirement may determine whether retirees live in squalor or are empowered to provide for their future economic well-being after leaving employment. Most retirement benefits arrangements in Kenya disburse pension withdrawals or gratuity benefit entitlements to retiring staff members in lump sum payments.
It is easy and convenient to do so. However, more often than not, beneficiaries are not accustomed to receiving and managing such large sums of money. As a result, within months, or even weeks, the money that was meant to provide for the future economic well-being of the family is spent. Investing retirement savings on the other hand is an art of balancing current financial outlay against future financial needs and placing the savings in assets that guarantees future needs.
A major factor to consider in determining the level of risk an individual can take in investing retirement savings is age. As a result, a major social characteristic of retirement for majority of Kenyans today is the transformation of expectations to fear or hopelessness. But one of the most ideal areas that one can invest in when retiring is the real estate sector. Specifically, a home to spend sunset years.
Currently, it is estimated that at least 20,000 civil servants retire every year in Kenya, and the number is bigger in the private sector. 30 percent of Kenyans live in the main urban areas, which are heavily congested. By 2030, the World Bank estimates that Kenya’s population will be close to 60 million, which means that the level of congestion and availability of living spaces will be strained. With jobs concentrated in the urban areas, Nairobi and its environs will continue to be the most attractive area to for those retiring to invest in. Those looking to live near Nairobi in retirement can start investing today when there is still affordable and available land within the city’s environs. Some of the prime areas that you can put your money include Joska, Kamulu and Malaa all along Kangundo Road. These areas, already witnessing robust growth, are appropriate for residential, commercial and speculative purposes.
Real estate companies such as Fanaka Real Estate have established already projects such as Haven Gardens in Malaa, Sunrise Gardens in Kamulu and Sunset View Gardens in Joska. “It is no one’s wish to live in rentals forever. You need a place to call home, where no landlord will knock on your door for rent at the end of every month. It doesn’t have to be expensive. Currently we have Springfield Commercial plots in Malaa, Joska Greens, Olive Gardens, Dhahabu Ridge Gardens also in Malaa and Kamulu Gardens which are very prime,” says Fanaka chief executive officer Moses Muriithi.