Octagon Africa

Qualities of a good pension plan

17
Feb

Saving for retirement is extremely important. Making plans for a better future cannot be over emphasized. It is something we ought to consider as early in life as possible. Because of the weight of this issue, you should be very careful in choosing a good pension plan. Here are some qualities of a good pension plan.

Personal fit and flexibility: The whole point of a persona pension is its ability to be tailored to your needs. You should be able to keep contributing even when you change employers. You should also be able to add to your contributions should you have some disposable money.

Simple and easy to understand: Once you sit with your pension provider you should be able to understand how your pension works. The joining in procedures should be easy and the forms simple to understand. Most pensions in Kenya nowadays allow for contribution via MPESA which is simple and convenient.

Good returns: It is important to know and understand how your money is invested, the returns as well as projected savings in the long run. A good pension plan should give you maximum returns on your investment.

Transparent: This is something you need to consider when choosing a pension provider. Your pension plan should be transparent and clear with no hidden charges or entries that cannot be explained. Your relationship manager should sit with you and answer any queries you may have. You should receive annual statements detailing how your pension is doing.

Additional benefits: a good pension plan should have additional benefits such as children trusts. It should allow for nomination of beneficiary in the event of death.

Comments

  • February 16, 2016

    Iam currently leaving employment to go self employment and would like to have a personal pension plan with you. Iam currently working for a company who have appointed you as an adminstrator and would like to to transfer 50% to a personal pension plan since i have not attained the minimum retirement age. Kindly advise me on the procedure to follow.

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