Entrepreneurship and daily living expenses are driving Kenyans to tap into their retirement savings prematurely, according to findings from the SanlamAllianz Retirement Benchmark Report Kenya.

A survey on reasons for withdrawing money meant for retirement shows that starting or supporting a business or firm is the leading driver, cited by 33 per cent of respondents.

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Capital needs for commercial ventures remain the primary motivation for individuals drawing down on their long-term savings.

Immediate economic pressures also account for a significant portion of early retirement fund withdrawals. Meeting daily living costs, paying rent, or settling household bills was reported by 17 per cent of Kenyans surveyed.

Tied with essential living expenses, another 17 per cent indicated that they withdrew their retirement funds to invest in property, land, livestock, or another asset.

Medical requirements and secondary business ventures also feature in how these funds are utilized. Healthcare needs or funding another business were cited by 16 percent of respondents as the reason for withdrawing their retirement savings.

The survey highlights the competing financial priorities Kenyans face, balancing long-term retirement security against immediate survival needs, asset acquisition, and business investments.