If you are an employer that does not have a retirement package for your employees, then it is safe to assume that your ability to retain excellent employees is not as strong as it otherwise could be. Many employers offering retirement packages, have led individuals to think that what they need is the right employer rather than the right retirement plan.
What is a Retirement Benefits Plan?
Retirement plans are offered by insurance companies and fund managers to help individuals build a retirement fund. Upon maturity, this fund is invested for generating a regular income stream, which is referred to as pension or annuity.
Why plan for retirement?
- Saving in a retirement scheme helps save and create the much needed income to cater for expenses in retirement.
- The weakening of the family unit today means you have to plan now for your retirement.
- Increased life expectancy means you will require money in retirement to cater for the expected longer life.
- Tax benefits. Saving in a registered retirement benefits scheme is one sure way of keeping your savings safe from the tax man.
- A pensions plan provides a disciplined way of saving. The money is not readily available for withdrawal like money in a bank account.
Benefits of joining a pension plan?
- An employer can contribute on behalf of the employee as long as the combined contributions do not exceed 30% of the employee’s salary
- The contributions have a 100% capital guarantee.
- Contributions are easy to make through payroll deductions, Direct Debits
- The fund earns compound interest and over time this grows to significant retirement savings.
- Improves a member’s financial security in retirement.
- Pooling advantage – results to economies of scale in investments, resulting in higher returns.
- Allows one to create a fund of which 60% may be assigned as a guarantee against a mortgage.
- The accumulated fund, plus investment income are payable to your survivors upon death providing a financial cushion in the event of your demise.
- Withdrawal terms are flexible with no penalties or hidden charges.
- Contributions are tax deductible. The Income Tax Act allows for a maximum tax deductible contribution of Kshs 20,000 per member per month (or 30% of your salary whichever is less)
How do I start?
Whether you are a small business or a multi-national organization, Walton Insurance can help you navigate the process of setting up the plan that meets your unique needs. Call Or Email Us Today!
0202400035 | firstname.lastname@example.org