There is an alarm worth paying attention to in Kenya’s retirement story, and it is backed by data.
A survey by the Retirement Benefits Authority (RBA) found that only 36 per cent of Kenyan retirees aged between 50 and 70 report having a strong sense of purpose in retirement. Just 46 per cent say they are enjoying life after work, while 53 per cent admit they miss the company of former colleagues.
These findings reveal a reality the pensions industry can no longer ignore. While financial planning for retirement is well covered, preparation for life after work remains significantly lacking. This raises an important question: Is it enough to secure the pension pot while overlooking the life that money is meant to support?
Retirement is not simply a financial event but one of the most significant transitions in a person’s life.
It marks the end of decades of structured work and the beginning of a new phase that requires purpose, identity, social connection and a renewed sense of direction.
Psychologists have long argued that purpose, routine and belonging are essential ingredients of wellbeing in later life.
They influence not only happiness but also health outcomes and longevity. When retirees lose their sense of identity or become socially isolated, the consequences can be profound.
The challenge is becoming more urgent as Kenya’s demographics evolve. Over the next two decades, Kenyans aged 50 and above are expected to account for more than 10 per cent of the population. Improvements in healthcare and rising life expectancy also mean that many citizens will spend 20 years or more in retirement.
Many pension schemes already offer pre-retirement training, but these programmes are often inconsistent and heavily focused on financial planning. Yet global experience shows that helping people imagine life after work is just as important as helping them save for it.
Trustees can play a meaningful role by integrating life planning into member education programmes and encouraging retirement transition initiatives that address health, wellness, entrepreneurship and social engagement.
Ultimately, the pensions industry must broaden its definition of success to include not only financial security but also wellbeing, purpose and social connectedness. A country that prepares only the pension and ignores the person risks producing retirees who are financially provided for, yet emotionally unanchored and socially isolated.
The goal should be to ensure that Kenyans retire not just with enough to live on, but with enough to live for.
Florence Nduba is the General Manager, KCB Trustee Services and a certified positive psychology practitioner. [email protected]
