Kenyan investment bank, Genghis Capital asset management arm, on Tuesday, announced its entry into the Retirement Benefits Industry with the launch of
two offerings.: Gencap Individual Pension Plan and Gencap Income Drawdown Fund.
Senior Manager at Genghis Capital Maurice Oduor said the launch comes at a time when less than 5 percent of Kenyans are comfortable during their retirement years.
Data by the Retirement Benefits Authority shows that about 20 percent of the working population have a retirement plan with only 1 percent of workers sector being under one form of a pension scheme.
The situation is further exacerbated by the low pension adequacy, with the income replacement ratio currently being at about 34.0%, according to a report done by Zamara Actuaries, Administrators & Consultants Ltd.
“This means that even the Kenyans who are saving for retirement, they are not saving enough to have a comfortable retirement, with the recommended income replacement ratio is 75%,” added Mr. Oduor.
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Product Development Officer at Genghis Capital Alice Kamau said the Individual Pension Plan would seek to leverage technology to reach a wide section of the public.
“We are working on automating our products to ensure anyone in any part of the country can join the Gencap Individual Pension Plan at ease from the mobile phones and at the same time enjoy above the average income through a professionally managed fund, “ she commented.
Genghis says the Gencap Income Drawdown Fund will be positioned as an attractive option for retirees who are looking to earn attractive income from their retirement savings and at the same time have the option of leaving an inheritance for their beneficiaries.
This is aimed at meeting the requirements stipulated in the 2019 Finance Bill, which made it mandatory for all schemes to include income drawdown as an option for members to access their retirement benefits, as opposed to just having annuities.