Parents and teachers in Kenya will soon learn ways to save for pensions and plan for retirement under Zamara’s Angaza program which will focus on offering financial literacy.
“Financial literacy is one of the most important life skills that everyone needs to learn today. Research suggests that money habits are formed as early as age seven and thus it is essential to ensure children receive a level of education about finances that will shape their attitude towards money during their formative years,” Pension administrator Zamara Group Chief Executive Officer Sundeep Raichura says.
He was speaking during a three-day Zamara retirement conference held in Coastal Kenya.
Raichura explained that if good habits aren’t formed at an early stage in life, it becomes difficult to point children in the right direction as financial literacy provides young people with opportunities to have a bright and more prosperous future since they are empowered with the right tools and knowledge.
He says a vibrant and growing pensions sector in Kenya was not only important for the future financial wellbeing of Kenyans but also an important pillar on which the future health of our economy will rest.
He, however, noted it was disappointing that policy measures that can have a meaningful impact on increasing pension savings, such as mandating pension savings and improved tax incentives remained elusive.
“Even proposals to simplify the tax system for pensions to make it easier and proposals to have a level playing field for pension savings compared with other forms of savings appear to be falling on deaf ears. We continue to appeal to our policymakers and have a collective responsibility to do so,” he urged.
In 2021, retirement benefits schemes have been on a recovery path having gained by 11.6% in comparison to the 7.0% gain recorded in 2020.
Cyton Investments expect continued growth in 2022 given the continued regulatory changes in the Retirement Benefits Industry and increased investment expertise.