Are you ready for retirement?
What’s your relationship with your money like? It is a fulfilling one or does it give you nightmares? Are you ready for retirement or is it something far into a future, a topic that you’ve not given too much thought?
Strathmore University officially launched the ‘Preparation for the future’ program aimed at empowering all University staff in planning for a comfortable and anxiety-free life after employment.
The program will impart knowledge and provide a road map toward attaining a safe landing upon retirement. It also seeks to empower all staff to have a plan, foresight, dedication, and focus in setting goals and aspirations for securing their future.
It also purposes to contribute toward instilling positive behaviours in planning for life after retirement and improving the quality of life of SU staff. The program will extensively prepare the staff for a smooth transition from employment to retirement.
Based on research conducted by the Strathmore Institute of Mathematical Sciences (SIMS) and Enwealth in 2018, only one in seven respondents are very confident that they will outlive their retirement savings, an important aspect in preventing old-age poverty. This is approximately 14.2% of the respondents, which shows a worrying trend.
The research also pointed out that after retirement, the income replacement ratio was at 55% against the standard required ratio of 75%. To put this into perspective, if one was earning a monthly salary of Kshs. 100,000 before retirement, the required emolument one should earn upon retirement should not be less than Kshs. 75,000 per month as per globally recommended standards.
Speaking during the launch of the program, the Vice-Chancellor Designate, Dr. Vincent Ogutu, noted that the program will provide foresight and sharpen SU staff skills to help in retirement.
Dr. Ogutu also gave an example of a friend, who on earning his first salary was advised by his parents against buying a car and instead invested in a mortgage at the tender age of 22. Years later, he became a proud homeowner in his thirties, reiterating the importance of advice and guidance on future planning to achieve set goals.
Conveniently, the people and culture department has prepared an elaborate blueprint for the SU fraternity to visualize their future and develop individual sustainability and resilience structures.
The program will be based on five key pillars of; physical, financial, health, psychological, and career well-being of the SU staff in line with the commitment to the transformative staff experience.
The SU staff were also taken through the importance of retirement planning by SU’s Raphael Karanja, Business Partner, People and Culture; Bancy Kaleli, Enwealth Financial Services; Sammy Kiragu, Sedgwick MD; Sahib Khosla, SIMS and Consultant Actuary; and Anthony Mbandi from the Strathmore University Foundation. They also reiterated relevant products and services available for a sustainable and fulfilling life after employment.
Bancy Kaleli, a Manager at Enwealth Financial Services, the SU Provident Fund administrator, gave great insights into the realities of retirement, pointing out that a lot of retired fellows had resorted to investing in farming, business, and rentals with some seeking new jobs.
She said that according to research conducted by Enwealth and SU, 35% of retirees have taken loans from banks, chamas and Sacco’s within their first year of retirement, with the majority resorting to mobile loans like Tala, Mshwari, Fuliza, etc.
Ms. Kaleli emphasized the need to start saving early and encouraged SU staff to take advantage of the available applications provided to gauge and project their benefits at the end of retirement to be able to plan efficiently.
The staff were also taken through: investing as a growth opportunity, knowing where you are in the journey to retirement, building income abilities, safeguarding your investment, risk management, and medical health planning.
All SU staff are encouraged to join the program and be part and parcel of the journey for a better and fulfilling life after employment.
For any inquiries and clarifications on the program, contact the People and Culture department at email@example.com.
This article was written by Collins Kiprono.
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