Every working person is aware that a time will come when they will have to retire. For some people, the State pension is enough to provide a basic level of income.

However, most people would want to supplement what they have with some form of a pension scheme.


Because of the weight of the issue, it requires one to be careful when choosing a pension plan.

Here are some qualities of a good pension plan.

1. Personal fit and flexibility: The whole point of a personal pension is its ability to be tailored to your needs. Something like being able to keep contributing even when you change employers is very important.

By the same scale, you should also be able to add to your contributions should you have some disposable money.

2. Simple and easy to understand: This means you should be able to understand how your pension works once you sit with your pension provider. What’s more, the joining in procedures should be easy and the forms simple to understand. Most pensions in Kenya nowadays allow for contribution via MPESA which is simple and convenient.

3. Good returns: By the same scale, it is important to know and understand how your money is invested, the returns as well as projected savings in the long run.

Noteworthy, a good pension plan should give you maximum returns on your investment.

4. Transparent: This is something you need to consider when choosing a pension provider. A pension plan should be transparent and clear with no hidden charges or entries that cannot be explained.

By the same scale, your relationship manager should sit with you and answer any nagging queries you may have.

In the same vein, you should receive annual statements detailing how your pension is doing.

5. Additional benefits: A good pension plan should have additional benefits such as children’s trust. For instance, it should allow for nomination of a beneficiary in the event of death.


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