Throughout history, mankind has faced the fact that life’s security was not assured. Be it from lack of survival sustaining resources or from experiencing the vicarious forces of Mother Nature.

With the advent of industrialisation and technological evolutions, family and community structures have broken down. In Africa, this has further been accelerated by the pressures of urbanisation, the disintegration of extended families, the abolishment of social and cultural norms as well as poverty and social disharmony.

We also suffer from behavioural myopia in terms of saving habits which exacerbates the issue of security to a new high. Thus, there is no safety net in place to cater for loss or reduction of productive capacity in one’s old age.

Social protection through social security policies that are aligned with economic labour policies is an economic and social necessity. In Kenya, this gap has been met by both the formal sector of salaried staff and the informal sector through insurance Retirement Benefits Schemes.

For instance, Old Mutual has been able to provide savings and retirement benefits policies that have provided security to many, and for generations.

This has been realised by ensuring management, investments and governance of retirement benefits funds by our skilled professionals. Success is evidenced by the growth of the total funds under the Group Holding management to over Sh260 billion by December 2021.

With a passion for ensuring life and indeed financial security is not curtailed at 60 years, the pensions team has strived through diverse campaigns, continuous technical training sessions, provision of interactive client service platforms, dedicated client specific employee benefits programmes as well as collaborations with the regulator events to ensure saving for retirement becomes an imperative part of each employee’s and employer’s agenda within their sphere of reach.

The first benefit of this venture accrues to staff leaving employment. In 2021 UAP-Old mutual group paid out billions in such benefits.

The lump-sum cash benefit received is utilised in business startups or capital influx that allow for one to diversify their portfolio as well as venture into entrepreneurship. Many members have utilised principles of investment and long-term savings imparted during member education.

Benefits paid from retirement benefits were key in supporting the rejuvenation of business ventures, whether new or old aver the Covid-19 pandemic ravaged our economic landscape in 2019. Additionally, they were crucial in sustaining livelihoods where income levels dropped in both the formal and informal sectors of the economy.

In addition, pensions are attractive tax shelters which encourage savings and accumulation of investment returns without attracting current taxations. This is advantageous as access to benefits is at the age of 60, when the advantages accrue. 

— The writer is Head of Pension Old Mutual Group