A recent report by the Association of Kenyan Insurers shows that over 70% of Kenyans are not prepared for retirement. This is attributed to high cost of living, meagre income, low level of saving discipline, lack of financial literacy and lack of investment ideas.
The survey also stated that a majority of Kenyans find information on saving for retirement from the internet and the media.
The survey was based on 10 counties and reported that those in rural areas were better prepared for retirement unlike those that live in urban areas. Experts estimate that a retired person requires up to 60% of their last salary in order to maintain their living standards.
The survey further reported that most retirees are using their retirement savings to build businesses. Most of the businesses fail due to poor management expertise and lack of business knowledge.
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