Individual Retirement or Pension Plans | Britam - Kenya
Individual Pension Plan Banner
Individual Pension and Provident Plans
Individual Retirement Plans
Creating a retirement strategy is vitally important. You need to start saving for retirement as soon as you start earning income. The sooner you start, the more you’ll accumulate. Our pension plans will ensure that you will have a consistent source of income and allow you to maintain your lifestyle in the future.
Types of Individual Retirement Plans
We have two retirement savings options that will make sure that you’ll have the income you need as you head into retirement. The key difference between the two is the mode of payment at retirement.
- Pension plan -A third of accumulated benefit will be paid as a single lump sum amount and the remaining two thirds.
- Paid as a regular income for life upon retirement.
- Can be withdrawn from the fund in a minimum of 10 years.
- Provident plan -The accumulated amount will be paid in one single lump sum upon retirement
Your savings will grow exponentially over time while earning interest. On attainment of your selected retirement age, Britam will pay your accumulated retirement benefits in accordance to the option selected at the inception of the policy.
- The Key Objectives
- What Are The Key Features Of This Plan?
- What are the key benefits of the individual retirement plan from Britam?
- To provide self-employed or employees in organizations that do not operate occupational pension scheme, with an opportunity to save regularly for a reliable and long-term retirement
- To enable self-employed or employees in organizations that do not operate occupational pension scheme to take advantage of the generous income tax relief available to members of a registered retirement
- To enable an employer with few employees (below 10) set up a pension fund for them at
- To enable a withdrawing member of an employer retirement benefits scheme, preserve their accumulated retirement fund in whole or the 100% deferred employer benefit until they reach retirement
Flexible contributions: Contributions can be fixed or varying; made monthly, quarterly, semiannually or annually.
- An employer can contribute an equal or higher amount as an employment incentive.
- The minimum contribution under the policy is Kes 500. There is no upper limit on contributions.
- Britam will provide you with a personalized individual retirement plan account and keep track of your savings and interest earned.
- A personalized statement of savings will be sent to you at the end of each financial year or any other time on request.
- A member can access accumulated fund at any time subject to the prevailing regulations.
- Monthly contributions are tax deductible. The monthly contribution is tax deductible at source i.e. your contribution will be deducted from your gross pay before P.A.Y.E is computed. The current maximum tax deductible contribution is Kshs. 20,000.00 per month or a third (1/3) of monthly income whichever is lower.
- Tax exempt investment income: The interest earned is exempted from tax in full.
- Compound interest: Compound interest accrues on the contributions received, leading to a faster accumulation of your fund.
- Investment income: Contributions are prudently invested to ensure high returns with a guaranteed minimum compounded rate of 5% per annum.
- Portability: The plan is portable and is not affected by changes in employment.
- Flexibility: You can vary the contribution made to the plan from time to time subject to a minimum of Kshs. 2,000 for every payment. You can also vary the frequency of making contributions to suit your financial circumstances.
- Pension backed mortgage: A member can assign up to 60% of the accumulated fund towards financing the purchase or construction of a house.
- Guaranteed Capital and Interest: Capital (accumulated benefits) is guaranteed against any form of reduction. And Interest rate is guaranteed not to fall below 5.00% p.a.
- Variety: A choice between a Pension and a Provident Fund. Pension Fund pays a maximum of a third (1/3) of accumulated benefits as a single lump sum and the remaining two thirds (2/3) purchases a pension annuity which pays a guaranteed regular income for life or a Provident Fund pays the accumulated amount in one single lump sum.
- In case of death prior to retirement age, the total accumulated amount becomes payable to appointed beneficiaries.
Other Value added services:
1. Britam will keep you informed of the changes occurring in the pensions industry.
2. Britam Individual Pension Scheme is approved to receive NSSF Tier II contributions.