Changed employers? Consolidate your pension

More often, most employees when they leave one employer for another they never remember to move with their pension benefits.

Needless to say, some don’t even know that they can transfer their pension either to the scheme of the new employer or an individual pension plan (IPP) also called a Personal Retirement Scheme. One can opt for a Pension Fund or a Provident Fund. The Provident Fund gives a member at retirement the option of taking the accumulated fund in lumpsum while a Pension fund allows a member to access one third of the accumulated fund while the two thirds one purchases regular income through lifetime annuity or an income drawdown

Any registered pension scheme is transferable from one scheme to another either as an organization or an individual. Most of these funds are guaranteed with a worst case scenario guarantee of minimum of 4-5% returns/ growth in your pension. On average, the return has been 10% per annum. The list of registered schemes is published on RBA website https://www.rba.go.ke/registered-schemes/ 

Are you self-employed or recently left formal employment?

Reasons why you need to start or transfer your pension to an IPP/PRS

• There is a tax relief of up to 20,000 contribution per month
• You will not to go through the hustle of tracing your pension scheme(s) from the scheme(s) of the previous employer(s).

• We help you choose a company with good returns to set up a personal plan

• You can always contribute regularly towards your personal plan to grow your retirement funds

• You are able to monitor your funds easily and are in full control of your account

• You can convert your retirement benefits from a pension scheme to a provident fund

• You will have an online portal where you can access your pension statement at any time while yearly statements are sent after the interest is declared.

• You are required to nominate beneficiaries when joining the scheme while you can amend beneficiaries later as circumstances dictate. 

• You can assign up to 60% of your funds to guarantee a mortgage while you can use up to 40% of your funds subject to 7 million to purchase a residential house. 

• Minimum retirement age is 50 years while from 65 years you receive all your benefits tax free.

We at Earnest Financial and Insurance Consultants we will help you set up an IPP, contact us today www.earnestinsurance.co.ke