Nearly three in 10 Kenyans know roughly how much monthly income they will need in retirement, while a significant proportion have only a rough idea or are saving without a clear financial target, a survey by SanlamAllianz shows.
The SanlamAllianz Retirement Benchmark Report Kenya found that 29 per cent of respondents knew approximately how much they would need each month after retirement.
Another 26 per cent had a rough idea of their expected monthly income needs, while 25 per cent had a savings target but did not necessarily know how much they would require monthly.
Meanwhile, 15 per cent said they had no retirement income target, highlighting gaps in planning for life after employment.
The findings point to differing levels of preparedness among Kenyans as they consider how to sustain themselves financially after leaving active employment.
Having a clear monthly income target can help individuals estimate how much they need to save during their working years and assess whether their retirement plans can meet their expected expenses.
The survey also examined how respondents would prefer to receive income during retirement, with more than half favouring a guaranteed income for life.
According to the report, 51 per cent preferred a retirement income arrangement that provides payments throughout their lifetime.
A further 18 per cent favoured a mix of retirement income options, while 16 per cent preferred receiving their retirement benefits as a lump sum.
Another 15 per cent opted for a flexible arrangement that would allow them to access their retirement income according to their needs.
The preference for guaranteed lifetime income suggests that a predictable stream of payments is the most popular option among the respondents surveyed.
The findings highlight the importance of understanding both the amount of money needed in retirement and the preferred way of receiving it.
While some respondents have established savings targets or estimates of their future income needs, others have yet to determine how much they will require or how they would like their retirement benefits structured.
The report's findings provide a snapshot of Kenyans' retirement planning priorities, from setting income goals to choosing how savings should support them after retirement.
