What you need to know about Retirement Planning?
How do I get started?
All you need is to talk to us, we will guide you in finding a good pension scheme, fill in the application form, submit your KRA Pin copy, ID copy and passport photo and voila! Start your regular payments.
How will I make my regular contributions?
Based on personal preference or convenience, one may make their contributions by M-pesa, cheque banker’s standing order, check-off etc. You may contribute at your own pace whether it is monthly, quarterly, half-yearly or even annually. Unless you are formally employed, this should be done monthly by your employer.
What happens if I stop making payments?
Unlike most insurance products, pension plans allow for flexibility. You may stop and resume your contributions at any time and the accumulated fund will continue to earn interest. You may also increase, decrease, or suspend your contributions as your circumstances change.
How is my contribution invested?
Bima Hakika takes a prudent approach to ensure we recommend schemes that have proven profitable investment record. Since we work for you, security and sustainable long-term returns are foremost on our minds. We work only with retirement fund schemes that aim to maximize returns on your contributions while providing you a guarantee on your accumulated fund.
How can I monitor my fund?
The Fund Schemes are mandated to share annual statements of account showing how your fund has performed during the year and the interest earned from the fund. Should you wish to know your fund’s current value, this information is easily provided.
Can I move or withdraw my retirement fund before retirement?
One may terminate the contract and withdraw the funds at any time. However, the fund will be subject to taxes payable and locking-in of 50% of benefit arising from the employer’s contributions for employer pension funded schemes.
What happens if I get disabled, critically ill or death occurs before retirement?
In case of early retirement due to ill health or disablement the accumulated fund at the date of early retirement is payable same as at the date of your death which will be payable to your
dependents. Interest will continue to be credited to the fund from the date of your ill-health or death to the date of actual payment.
When can I retire?
Everyone is free to choose their retirement time, one may retire as early as age 50 or even later than age 60 depending on their circumstances.
How do I access my money?
The accumulated fund is available to you at retirement to purchase an annuity. The fund may also be taken as a lump sum, when taken up as lump sum the money is subjected to Income Tax deductions and approval from the Retirement Benefits Authority.
What is an annuity or pension?
This is the after-retirement income one receives and is a series of periodic payments payable throughout one’s life. The accumulated fund at retirement is used to purchase the annuity. Details on the assorted options available on the type of annuity options are explained here.