In the African set up, Planning for retirement is one of the major components that can ensure the future generation understands the need to have a secure retirement; by ensuring that they are fully aware of their levels of contributions through their life course. It is also imperative for young generation to understand their attitudes, knowledge, expectations and savings habits from an early working age. Further, emphasis of individual responsibility for financial provision in retirement is a key in ensuring the increased demand for individual ability to plan effectively for their retirement.
Traditional systems of old-age security is breaking down with many income earners who spend many years doing personal financial planning in order to enjoy their desired lifestyle – only to get exhausted at the finishing line – by not having a retirement plan in place to cater for their livelihood during the sunset years. According to Retirement Benefits Authority (RBA), only about 20% of Kenyans are pensionable meaning that 80% of Kenyans, who are mostly in the informal sector, are not pensionable and have no retirement plan.
Mitsaelengos believes that if the schools are enough, and they are releasing people with no jobs waiting for them, then we need to change approach and pass on what we know and creates opportunities for the next generation by emphasizing on retirement planning through a partnership with the Innovative Social Security Finance Program (ISSFP).
This initiative will go a long way in ensuring safe & secure retirement as well as reduce the bulk of the pensioners in Africa who retire to the rural areas with no pre-retirement & post retirement solution in their sunset years. Therefore, there exit a need to encourage upcoming generations on the importance of saving for retirement.
Just like any marathon athlete would not wish to start on a high pace only to lose energy on the last lap to the finish line, any income earner would not want to work forever and savings is therefore critical to retirement planning. The fear of prolonged life on the other hand is usually mute and only emerges at a later time in life when one is retired, weary and old to fend for his financial needs. This is what creates the need for retirement plans such as pension schemes and annuities as a means of financial livelihood for the retired.
Mitsaelengos Technology & Innovative Social Security Finance Program also seeks to provide expertise in each of the areas critical to the success of the implementation of pension administration to its members. We have a clear understanding and knowledge on the pension industry to advice you on the most appropriate value addition retirement solutions that will fit the successful retirement solution for the younger generation in our society.
This innovation will also help the new businesses in on the Mitsaelengos platform to understand how existing pension regulations applies to their ideas as well as proving one-stop shop for individuals to see their pension situation as they grow older.