Retirement Survey Identifies Four Major Barriers to Financial Security Among Kenyans

By Violet Kerubo

The Chief Executive Officer Sanlam Allians Jacqueline Karasha today at Radisson hotel during the Retirement Benchmark Report Kenya 2026 said that the new retirement benefits benchmark report has identified affordability, preservation of savings, sustainable retirement income and trust in pension institutions as four major factors influencing retirement preparedness among Kenyans.
The findings highlight a growing gap between awareness of the importance of retirement planning and the ability of individuals to save adequately for their future, despite continued growth in Kenya’s pension sector.
The Sanlam Allianz Retirement Benefits Benchmark Report examines the financial realities facing individuals and households, highlighting the need for retirement solutions that respond to people’s changing circumstances and long-term needs.
During the presentation of the findings, it was noted that retirement planning competes with other financial priorities, including raising families, paying school fees, meeting healthcare expenses, building homes, running businesses and responding to unexpected financial emergencies.
These competing obligations make it difficult for many households to maintain consistent retirement contributions over the long term.
Affordability Limits Consistent Retirement Savings
Affordability emerged as the first major theme in the report, with the findings indicating that many Kenyans understand the importance of saving for retirement but struggle to contribute regularly because of financial constraints.
The presentation emphasised that the problem is not necessarily a lack of willingness to save, but the difficulty of sustaining contributions when household budgets are already under pressure.
This challenge highlights the need for retirement benefits products that reflect the different income levels and financial circumstances of Kenyans.
Early Withdrawals Threaten Retirement Security
The second theme focused on the preservation of retirement savings, particularly among formally employed workers.
According to the presentation, job transitions, unemployment, emergencies and other unexpected life events can force individuals to access funds originally intended for retirement.
More than half of the respondents reportedly understood the negative consequences of early withdrawals, while some expressed regret over withdrawing their retirement savings following job losses and other financial shocks.
The findings also indicated that many respondents preferred their retirement savings to be protected and kept out of easy reach.
This points to the importance of encouraging long-term savings while recognising the financial pressures that can arise during an individual’s working life.
Healthcare Costs Raise Concerns About Retirement Income
The third theme examined whether retirement savings can generate sufficient income to support individuals throughout their retirement years.
The report’s presentation noted that retirement can last 30 years or more, making it essential for individuals to plan not only how much they save but also how those savings will sustain them after leaving employment.
Healthcare financing emerged as another major concern, with most respondents reportedly lacking specific plans to save for medical expenses after retirement.
The findings underscore the importance of incorporating healthcare costs into retirement planning to help retirees manage medical expenses without depleting their savings.
Trust and Accessibility Remain Key to Pension Participation
The fourth theme centred on trust, accessibility and engagement.
The research indicated that individuals are more likely to prepare for retirement when they understand the available options, trust the institutions managing their savings and have access to products suited to their circumstances.
The report also highlighted a significant population that remains largely excluded from the retirement savings system.
Expanding pension coverage will therefore require efforts to improve accessibility, strengthen public understanding and develop retirement solutions that meet the needs of people across different income groups and employment arrangements.
Pension Assets Reportedly Reach KSh 3 Trillion
The findings come as Kenya’s pension sector continues to expand, with pension assets reportedly reaching approximately KSh 3 trillion.
The presentation noted that pension assets are growing, contribution rates are increasing and regulatory reforms have been undertaken to strengthen the industry.
However, the research sought to look beyond these indicators to examine the experiences of the people the retirement benefits system is intended to protect.
It highlighted that participation in the financial system does not automatically translate into financial security throughout retirement.
The gap between awareness and preparedness remains a significant concern, demonstrating the need for solutions that enable people to save consistently, preserve their funds and generate sustainable income in old age.
Report Calls for Greater Focus on People’s Retirement Needs
The report provides insights into the experiences, expectations and challenges facing people as they prepare for retirement.
Its findings point to the need for pension providers, regulators, employers and other stakeholders to consider affordability, savings preservation, retirement income and healthcare financing when developing strategies to improve retirement security.
Ultimately, the research highlights the importance of ensuring that growth in Kenya’s pension sector translates into better financial outcomes for individuals and households.
As the industry continues to develop, addressing the barriers identified in the report could help more Kenyans prepare for retirement with greater confidence and financial security.