Old Mutual Kenya provides pension plan for individuals who are planning to save for retirement. The pension plan requires one to save contribute annual premium of Ksh 6,000,meaning in a month you are required to contribute a minimum of Ksh500.
The beauty of this pension scheme is that after your retirement, you will receive your money and interest accumulated over the period you have contributed towards the scheme.
This is how the plan works
OLD MUTUAL PERSONAL PENSION PLAN is a retirement benefits scheme that allows individuals to save regularly to build up their retirement income. Personal Pension Plans (PPP), also commonly known as IPP, are normally used by self-employed individuals and those on fixed-term employment contracts to build their retirement income.
Whilst individuals look forward to retirement from formal employment, most of them are neither saving enough nor starting to save early enough to fund the lifestyle they desire in retirement. OLD MUTUAL PERSONAL PENSION PLAN can also be used by employees who are already members of an occupational scheme (employer-owned schemes) to augment their retirement savings.
OLD MUTUAL PERSONAL PENSION PLAN can also be used by individuals who change jobs, and are looking to park their past employment pension contributions whilst they join their new employer’s retirement scheme.
This is a defined contribution scheme and individuals who want to join need to meet the following requirements:
- The individual must be between the ages of 18 years and 74 years at entry into the scheme.
- The individual must contribute a minimum of KES 6,000 p.a. (KES 500 p.m.) or a minimum of KES 25,000 on transfer from another scheme.
- The individual will be responsible for all arising tax liabilities (if any) whilst contributing towards the scheme. Contributions to a pension scheme are tax deductible up to specified limits.
The key benefits that members of the OLD MUTUAL PERSONAL PENSION PLAN will enjoy are:
- Tax efficient remuneration – Contributions to the scheme will be tax-free up to certain limits (currently the lower of 30% of salary or KES 20 000 per month).
- Transparency – The scheme will ensure all fees payable to service providers are communicated and traceable.
- Greater Flexibility – Members can vary their contributions subject to a 30-day notice period.