Wednesday, February 27, 2013

Saccos urged to encourage retirement savings

 NSSF headquarters in Nairobi.
NATION CORRESPONDENT



Sacco societies should go beyond lending and deposit-taking to help their members start saving for retirement, the Retirement Benefits Authority has urged.

With traditional systems of old-age security breaking down, accomplishing a secure, comfortable retirement will be easier if one plans for their retirement, authority CEO Edward Odundo said.

“Saccos and pensions are key to our country’s development because they mobilise savings to enable us realise a savings to gross domestic product ratio of 25-28 per cent, as envisaged in the macro-economic framework underpinning the Vision 2030,” he said during Muramati Sacco Society annual general meeting at Murang’a on Friday.

“But equally important, they have a responsibility to ensure that their members have access to retirement planning to adequately prepare them for old-age by saving for their retirement.”

Mr Odundo said that the authority works with the Finance ministry to ensure tax incentives and regulations are put in place and that Kenyans take charge of their retirement planning. Both employed and self-employed people should also be allowed to have suitable retirement saving arrangement.

Muramati Sacco Society chief executive Tony Mwangi said the sacco had an interest in the Mbao Pension Plan because of its flexibility as it enables members to save for retirement by contributing at least Sh20 daily through either M-Pesa or Airtel Money. He said the sacco will have a desk dedicated to the plan in each of its 13 branches

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