Old Mutual Kenya is aiming to grow its pension funds in reaction to a call by the government to employers to fully implement the National Social Security Fund (NSSF) Act, 2013.
The insurance service provider made the announcement as the government has been pushing to transform the local pensions industry drastically through the NSSF Act 2013.
“We take cognizant that we must embed our partnerships with tied financial advisors, independent agencies, brokers, bancassurance, and financial managers among other intermediaries to have a one-stop shop to deliver more than just pension services but also an array of diverse financial solutions with a key aim to help more Kenyans live, work and retire honourably,” said Old Mutual Life Acting MD Calvince Onduru.
Old Mutual says it will collaborate with key insurance intermediaries and providers in Kenya's retirement sector to enhance its pension funds under management.
Old Mutual Head of Pension Christine Karoki noted only about 20 per cent of Kenyans are saving adequately for retirement pointing at the untapped future of retirement benefits.
“The untapped market is vast, and most comprises people aged 35 and below who are faced with the uncertainty of the future. We also intend to leverage technology to help bring information closer to the people and instil financial discipline for them to make an informed decision,” said Karoki.
Old Mutual will leverage technology and big data analytics to identify and reach the untapped market of Kenyans aged 35 and below who face uncertainty about their financial futures.
The pension industry in Kenya reported Sh1.5 trillion in funds under management as of December 2021, with close to a third going to NSSF and the rest held by private schemes.