How much should I save for retirement? How long before I retire do I need to start saving? What kind of investments should I consider? These questions are important to answer before you begin preparing for retirement in Kenya.

Retirement is a time when you stop working full-time. This means you must no longer worry about finding a job or earning an income. Instead, you can focus on spending your free time doing whatever you want.

How to Prepare for Retirement in Kenya

There are several ways to prepare for retirement.

Below are some useful tips to prepare for retirement in Kenya.

Take Inventory of Your Assets & Savings

You should take an inventory of all the assets you own and figure out how much they’re worth. You may be able to sell some items or use them as collateral if you need money in the future. If you don’t know what something is worth, you can ask someone who does.

Keep a tab on how much savings you have.

Determine Your Retirement Goals

Once you know how much you have saved and how much you will need, it’s time to determine your retirement goals. Do you plan on retiring early? Or do you want to work until you’re very old?

Estimate Your Monthly Income Needs

Once you know where you stand financially, it’s now time to estimate how much you will need each month once you retire. It’s easy to underestimate how much money you will need after you stop working.

Start Saving Now

Now that you know how much you need, you need to start saving for your retirement. Start by putting aside 10 percent of every paycheck in a Pension or Provident Fund.

Square Away Your Health Insurance

If you still have health insurance through your employer, make sure you understand your options. You can also look around for the available Elderly insurance options and pick which you can easily afford during your retirement period.

Clear your Debt

Debt can slow down your ability to save money. Make sure you get rid of debt like credit cards, student loans, car payments, and other bills.

Review Your Investments

It’s also a good idea to review your investment portfolio. Make sure you’ve got enough cash in stocks and bonds to cover your needs. You may also want to consider adding life insurance to your portfolio.

Build an Emergency Fund

Having enough saved up for emergencies will give you peace of mind. An emergency fund shouldn’t exceed six months of living expenses. For more information on a Retirement Savings plan, get in touch with us at life@gakenya.com and we will guide you through the process.