CORPORATE SCENE
CPF Financial Services
By Marketing Africa Crew
Marketing Africa crew held a discussion with Mr . Hosea Kili , Group Chief Executive Officer , CPF Group on CPF ’ s role in the current pandemic disrupted ecosystem and shares the excerpts herein .
What is CPF Financial Services and what products and services do you offer ?
CPF Financial Services is a Pension Funds Administrator , founded on the success of over 90 years of administering the Laptrust Defined Benefit pension fund . Over the years , we have grown to be one of the biggest providers of pension and retirement benefits services in Kenya and East Africa . Our service offering has also expanded beyond pension and into other financial services including Trust Fund Services and Management Consulting .
What are some of the misconceptions about pension ?
One of the biggest misconceptions surrounding pension is that it is not an urgent matter and it is only for those nearing retirement to think about . However , this is not true . Thinking about pension should begin when one first starts working because the average working life takes most people about 30 years and with the current life expectancy being at 75-80 years there is a need to start planning for retirement way in advance .
The belief that family will take care of you when you retire is now obsolete . The dependency rate in Kenya is currently at an all-time high which in effect perpetuates the cycle of poverty among the working class , who have to support the aging population instead of saving for their own future . The modern economy makes it hard for the working class to support the elderly due to the many competing needs and the breakdown of social fabric . It is therefore very risky to assume that your children or relatives will take care of you in old age ; you have to plan for your own future while you still have the means .
Pension is not only meant for people who are employed . A constant fact is that retirement will happen whether one is in self-employment , formally employed or in the informal sector . Aging happens to all of us .
Times have changed and parents can no longer count on depending on their children to support them in retirement . It ’ s therefore incumbent upon all of us to plan while we are still actively working to realize the dream of a comfortable retirement .
Demystify Pension for the regular Kenyan
Saving for pension is not complex . The Retirement Benefits Authority , the regulatory body of the retirement benefits industry in Kenya , has a list of about 35 accredited pension providers who have convenient and flexible pension products to allow anyone to open an account and start saving for their future . Products like the CPF M-Pension allow one to enroll in a pension fund and begin the journey , at the comfort of a mobile phone .
The secret with pension savings is the power of compounding interest ; it is therefore recommended that one starts saving for pension as early with their first pay cheque . It is the only way to guarantee adequate pension in retirement .
The concept of pension is very well entrenched in the developed economies and that is why you will find a lot of pensioners holidaying in Africa - out of their pension savings ; it is time that Kenyans took it equally seriously .
Very few people in Kenya plan for their retirement , why do you think that is so ?
A secure and comfortable retirement ranks high in most people ’ s priority list as one of the goals we work , save and invest for . However , retirement planning often competes with the immediate needs of most Kenyans because they don ’ t earn enough to allow them put away some for a rainy day .
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