As an employer, it’s important to offer a comprehensive retirement package to your employees. If you don’t, your ability to retain excellent employees may not be as strong as it could be. At Jasmur insurance, we want to help you provide a retirement benefits plan that will leave a lasting legacy of your organization’s name for generations of your employees to come.

What is a Retirement Benefits Plan?

A retirement benefits plan is offered by insurance companies and fund managers to help individuals build a retirement fund. This fund is invested for generating a regular income stream, which is referred to as a pension or annuity.

Why Plan for Retirement?

Planning for retirement is crucial, and here are some reasons why:

• Saving in a retirement scheme helps to create the much-needed income to cater for expenses in retirement.
• The weakening of the ubuntu spirit in our families today means you have to plan now for your retirement.
• Increased life expectancy means you will require money in retirement to cater for the expected long life.
• Saving in a registered retirement benefits scheme is one sure way of keeping your savings safe from the tax man.
• A pension plan provides a disciplined way of saving. The money is not readily available for withdrawal like money in a bank account.

Some facts about setting up the retirement fund;

• An employer can contribute on behalf of the employee as long as the combined contributions do not exceed 30% of the employee’s salary.
• The contributions have a 100% capital guarantee.
• Contributions are easy to make through payroll deductions, Direct Debits.
• The fund earns compound interest and over time this grows into significant retirement savings.
• Improves a member’s financial security in retirement.
• Pooling advantage results in economies of scale in investments, resulting in higher returns.
• Allows one to create a fund of which 60% may be assigned as a guarantee against a mortgage.
• The accumulated fund, plus investment income, is payable to your survivors upon death providing a financial cushion in the event of your demise.
• Withdrawal terms are flexible with no penalties or hidden charges.
• Contributions are tax-deductible. The Income Tax Act allows for a maximum tax-deductible contribution of Kshs 20,000 per member per month (or 30% of your salary whichever is less).

At Jasmur insurance, we have the expertise to guide you through the process of setting up a retirement benefits plan for your employees. Contact us to get started on securing your employee’s future today