By Erick Nyayiera
Individuals who are self-employed in Siaya County have been encouraged to embrace the culture of saving for retirement as a security measure for their old age.
According to Retirement Benefit Authority (RBA) Cooperate Communication Manager Rose Kwena, those in self-employment should ensure they join the various private and occupational pension schemes to save for their retirement.
“Individuals in self-employment do not have any excuse not to save for retirement. There are over 30 pension schemes in the country where they can put aside a small portion of their earnings for future use,” stated Kwena.
Speaking in Bondo town when she addressed various Sacco members drawn from the sub-county during the sensitisation of micro and small enterprises on the need for saving for retirement, Kwena noted that long gone are the days when people considered their children as their retirement plans, adding that individuals should now make deliberate efforts to save for retirement to avoid suffering in old age.
“Things have changed. Most Africans imagined their children as retirement plan, but this has now become difficult because children go away and cannot support their parents due to lack jobs or lack of consistent incomes” Kwena said.
Kwena who was accompanied by area Deputy County Commission Tom Macheneri said that people in the informal sector should not wait to have a lot of money to save for retirement, but should instead put aside part of their earnings since a time will come when they will not be able to work.
She added that those who start early earn huge interest on their savings compared to individuals who start saving when they are old.
“Pension benefits 30 per cent of individual’s interest and 70 per cent of interests earned on the saving so the earlier one starts to save in life the more interest they will earn at the end of the pension plan,” she said.
Macheneri reiterated the same sentiments, adding that the self-employed individuals need to save money for retirement to avoid begging for assistance and support when they are no longer productive.