The employees of the Technical University of Mombasa (TUM) have been urged to prioritize saving for retirement to have a comfortable life after the age of 60.
Addressing hundreds of staff and the TUM’s assembly hall on November 9, 2023, Catherine Kang'ata, the General Manager of the Corporate Business Department at Jubilee Insurance, informed the staff that upon retirement, members of Jubilee Insurance will receive one-third of their money as a lump sum within 30 days.
The other two-thirds of the money will be paid as an annuity.
Kang'ata emphasized the importance of saving for retirement, stating that it provides financial security for dependants, helps maintain a certain standard of living, and offers tax-free benefits on both contributions and withdrawals.
She also cautioned employees about the need to nominate and update their list of beneficiaries to ensure that the money is distributed to the dependants in the event of their death.
Kang'ata revealed that they have encountered many complicated cases where employees failed to update their list of dependants.
She urged female employees to include their husbands in their list of beneficiaries, to ensure that the money can help support their children if something happens to them.
She said: "I know several women don't want to include their husbands in the list of beneficiaries! By bad luck, if the wife dies first, it becomes very difficult for the husband to access the money.
"Please allocate them even if it’s one per cent so that in the event of a sudden death at least the money can help the young children," Ms Kang’ata said.
Kang'ata reiterated that retirement contributions are tax-exempt up to a maximum of Kshs 20,000 per month, and withdrawals of up to Kshs 60,000 per year are also tax-free.
She advised TUM employees to monitor their statements, attend annual general meetings (AGMs), and nominate beneficiaries.
Kang'ata concluded her presentation by stating, "The best time to plant a tree was 20 years ago...the next best time is today."
Prof Joseph Rasowo, the Deputy Vice Chancellor of Administration Finance and Planning, emphasized the importance of treating pension seriously, as it is a lifelong benefit.
He assured the members that TUM management will continue to provide educational platforms to help employees make informed decisions regarding their pensions.
The event was attended by Dr Shivan Patel, the Registrar of Administration and Planning, Mr. David Mwakidimi, the Deputy Human Resource Manager, Deans, Directors, and Chairpersons from various Departments.