Low income earners especially those in the informal sector have largely been neglected by the formal pensions industry, ultimately condemned to poverty in old age. But now with today’s launch of M-Pension, individuals, farmers, fishermen, craftsmen, mechanics and other informal sector workers popularly known as jua kali can now plan for sunset years and a comfortable retirement.
According to CPF Financial Services CEO Hosea Kili said, “Social security is a fundamental right and vital component in alleviating old age poverty in Kenya. With M-Pension, a voluntary contribution package, we are addressing the needs of the ordinary mwananchi for an affordable retirement package that caters for their present financial situation.”
The M-Pension product will be offered as part of the Individual Pension Plan package currently being offered by CPF which the firm says was already being offered to both members and non-members of the Laptrust pension schemes launched in 2013.
M-Pension allows one to put aside money for retirement daily, weekly and monthly by saving as little as Ksh50 though one can also make lump sum contributions. Additional benefits to this product include life cover and last expense benefits for members.
Kenyans earning less than Ksh10,000 per month can now save as little as Ksh50 daily for their retirement through a pension product launched today by CPF Financial Services which also administers the Laptrust pension schemes.
Though M-Pension is a great mobile initiative for individual pensioners, CPF still needs to educate the public on the importance of saving for their pension. Safaricom’s Linda Jamii, a health insurance service had to do several community activations.