Retirement Planning and Investment.
Planning for your retirement is an integral part of healthy financial well-being.
If you are thinking about retirement; these three questions must be pestering your mind: How do I retire? What do I need for retirement? What are the important steps in retirement planning?
Worry no more!
We would all like to retire with enough financial resources to at least maintain our living standards after we are done with work. Unfortunately, most people start planning for retirement five to 10 years before the end of their active life.
So, when thinking about retirement, two factors are key to getting retirement planning right;
- Human capital: This is the present value of your total expected future earnings or simply, the return you earn for investing your time and skills in a job or business.
- Financial capital: This is your total wealth that is combined with tangible and intangible resources you own that are not human capital, for instance, your home, stocks, and fixed deposits.
So, this means at retirement, you only have financial capital, and no or little human capital. Therefore, your main goal at retirement is to have built up enough financial capital over the years to match or exceed your financial needs.
Why a retirement plan?
Hey, this is easy! We all would appreciate retiring with peace of mind, knowing we can sustain our living standards after we are done with work.
So why start saving for retirement early?
Okay here is the thing, when we are young human capital is one of the most valuable assets we own, unfortunately, it tends to be the most ignored in planning for retirement.
Do not join the bandwagon, because guess what! The younger we are, the higher our human capital because we have more years to receive labor income, so starting your retirement planning on your very first paycheck is ideal.
Let us break it down:
Take Kasyoki who is 26 years and Wanyonyi 39 years old. Both would want to retire at 55 years old.
Kasyoki has 29 years of labor income she can continue to earn, while Wanyonyi has only 16 years only. So as one age, their human capital reduces, and reliance on financial capital increases.
Now Wanyonyi needs to earn more from his financial capital to replace the human capital that declines to zero at retirement age to ensure his future is financially secured.
Bima hakika’s Wiz
At retirement, you are weak and worn out, and you only have as much wealth as you accumulated in your active days, this includes your retirement income.
Therefore, as a prudent planner, your goal should be to build up financial capital over the years to an amount that exceeds your anticipated retirement needs.
Take charge of your future financial security today!
Talk to one of our brand promise executives
Call in for a complimentary consultation!
How retirement Income planning works.
Many people deciding to save for their retirement are faced with a couple of concerns, among these are questions like; how do I know what I’ll need to live on at retirement? Which pension option should I select? When should I start collecting Social Security benefits? How will I pay for my health care at retirement?
To address these concerns, I’m going to ask you a series of questions to help you figure out just how much you may need at retirement and illustrate how our partnership can be that extra pair of hands you’ve always wanted.
Let’s start with a question.
- First, what are your retirement goals? Do you have any? Yes, No, Need to think
It is never obvious;
For a human to fulfill a need, they must identify a void. And to do that you need to be aware of the void. Done through a risk analysis process. Think of all the things that could make you sad in your old age that you would have avoided if you knew beforehand. This process helps us evaluate your goals and advise on the best retirement plans.
We suggest you list down your top twenty retirement goals, and arrange your goals into short, medium, and long-term goals. Assign a sum to each goal where appropriate.
- Now the question gets a bit delicate; what is your current financial position? I know, I am not sure
Oops, it is okay.
A lot of time you cannot tell right away, that is where we may be helpful.
To help you achieve your retirement goals, you need to take stock of where you are today and assess your retirement budget needs. To find out your risk exposure, we go through a process of risk analysis with you. Once our team learns what your goals and retirement budget are, we are pretty good at finding you the perfect solution. Even when it may not be obvious to you. For a start, you may need at least 10 to 14% of your active income to meet your goals in retirement. Preparing a retirement budget is an especially important task.
- Can you get the best pension plan with the best earning interest scheme? Yes, Not easy, I am not sure
Finding a perfect plan with maximum interest earner isn’t easy, this is where Bima Hakika’s wiz comes in handy.
Our team is not doing anything different from what you would do. You could find yourself a perfect plan at a perfect interest rate if you had the time and understood how retirement schemes work. But that is just it. Once our team understands your exact need and budget, it can help you get great schemes, in best interest at no time at all, and knowing this is a long-time plan we will keep evaluating the market and advising you when a change of scheme is necessitated at no cost.
- Lastly, what are the available options?
This one is simple: Bima Hakika’s wiz can help you make accurate decisions.
Once our team has identified your current position, your goals, and your budget. They can help you figure out your available alternatives and put in steps to cater to your future budget. Our team can advise you on the priority options so you can adjust your budget to accommodate this especially important financial planning.
If you are employed, most employers offer an automatic payroll deduction option for deposits into the pension plan, and the retirement plan administrator usually a separate financial institution handles statements, disclosures, and updates. Benefits of employer-sponsored plan
For self-employed, or to run a small company, you might have a separate set of retirement plans at your disposal among these is a choice to invest in an individual pension plan. Benefits of IPP
- All done.
Getting Started: It is easier than you think.
Why the first thing is taking a step back.
Now that you know your retirement goals and budget, you might be asking yourself how you can get started.
We have seen many customers dive head-first into buying a plan. But that is a tricky business. It is a lot of quick guesswork that might burn your fingers in the end.
It requires a lot of intricate information sharing before you can make the right investment. Slow down, take a step back, and talk to our professional advisors, it might take a few questions but it’s perfect results.
“A journey of a thousand miles starts with the first step.” A famous Chinese Proverb
Ask for a free phone consultation at +254732393100
Instead of jumping in too quickly, take a step back. Bima Hakika is already doing the heavy lifting by integrating into your decision-making journey.
With the help of our team of advisors, we perfectly match your needs into the perfect retirement scheme that will invest and give your money the maximum growth it deserves.
Helping you gain deeper insights into available options without additional effort and too much time from you.
All you need to do is make sure you equip us with accurate information that is necessary to set you up to get the most value out of available market schemes.
We have outlined three key considerations everyone should check to identify their pension planning needs.
Define your retirement planning goals upfront.
Much like any other financial decision, investing for retirement work best when you have clearly defined goals. Your goals, work to not only give you focus and commitment but also help your financial advisor find a product that best addresses your goal. Make sure your goal is quantifiable and measurable. Doing this upfront will help you define and measure the success of your pension plan in covering your anticipated retirement needs.
A pension plan is as good as the customer-provided info.
Here is a golden rule to remember: an insurance advisor’s recommendation is only as good as the information given by the customer.
So, to give effective advice, you must give the right data for the problem you are trying to solve. And not just a few data points. Financial advisors need a lot of data to learn — think hundreds of thousands of data points.
Your information will need to be formatted, cleaned, and organized for our financial and need planning, it will need to accommodate both your future budget and current position.
Trust a diverse team with the right mindset
Our team of skilled experienced advisors will walk with you to establish your specific retirement needs, advice on the critical points when it comes to choosing of the pension scheme, guide you on the most stable interest-earning options, and added the benefit of accessible after-sales service.
Bima Hakika Wiz
The choice of type of pension plan one prefers is decided at the commencement of the contribution. Whether pension plan or provident plan we will guide you based on your retirement goals.
That is why engaging a cross-functional team is essential to a pain-free experience!
To get the most out of the insurance industry as a customer, you need the right team with the right mindset in your corner!
Our team adopted a cultural shift away from traditional insurance, one that prioritizes seamless customer experience, and customer feedback, and rewards customer loyalty.
How our business model powers your purchase journey.
A deep dive into the salient benefits and opportunities of using the BimaHakika.com platform;
- Need analysis discovery: Identify your most valuable retirement needs.
- Creative solutions: Quickly get the most practical solutions for your budget.
- Stay informed and in control: with our platform, control is in your hands.
“Building wealth takes time. The sooner you start investing, the better prepared you will be later.” Anonymous