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Pension 101
kiterunner
#1 Posted : Tuesday, February 05, 2013 6:56:09 PM
Rank: Member


Joined: 7/9/2011
Posts: 730
Location: Nairobi
For the first time I have started to think of pension (am almost 30). I have estimated that I want my pension to be around 360k dollars by the time of retirement (60). Assuming 6% compounding it means I need to put over 20,000 shillings per month in a pension scheme for the next 30 years.

My questions

1. How reliable is NSSF for such an endeavor? Does NSSF reveal their earning per year to members? ie by topping up the statutory 320 bob

2. Private schemes ie Jubilee. In my naivety i somehow cant warm up to putting such a big amount in a private company (not govt backed) and be assured it will wither all storms and still be there in 2045 d'oh! d'oh! opinions, pointers and/or reassurance from wazuans welcome

If it were you what proportion would go to NSSF and what proportioin goes to a private pension fund?

our goals are best achieved indirectly
Mukiri
#2 Posted : Wednesday, February 06, 2013 2:22:40 AM
Rank: Elder


Joined: 7/11/2012
Posts: 5,222
If there is something life has taught me, no one cares about you, more than yourself. To give someone money in the hope that they'll multiply it and give it back to you, as you want it is... (please insert a soft word there).

Why not learn the ropes and make your money work for you? This is the last thread that comes to mind.

Proverbs 19:21
VituVingiSana
#3 Posted : Wednesday, February 06, 2013 3:44:57 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,129
Location: Nairobi
kiterunner wrote:
For the first time I have started to think of pension (am almost 30). I have estimated that I want my pension to be around 360k dollars by the time of retirement (60). Assuming 6% compounding it means I need to put over 20,000 shillings per month in a pension scheme for the next 30 years.

My questions

1. How reliable is NSSF for such an endeavor? Does NSSF reveal their earning per year to members? ie by topping up the statutory 320 bob

2. Private schemes ie Jubilee. In my naivety i somehow cant warm up to putting such a big amount in a private company (not govt backed) and be assured it will wither all storms and still be there in 2045 d'oh! d'oh! opinions, pointers and/or reassurance from wazuans welcome

If it were you what proportion would go to NSSF and what proportioin goes to a private pension fund?

Well... 1) Jubilee has had a MUCH BETTER rate (& service) of return vs NSSF. 2) It has been around for 60 years. If it is managed prudently (as has been the case in the past) it should be around in 2045. Though, no guarantees.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Lolest!
#4 Posted : Wednesday, February 06, 2013 6:52:14 AM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Mukiri wrote:
If there is something life has taught me, no one cares about you, more than yourself. To give someone money in the hope that they'll multiply it and give it back to you, as you want it is... (please insert a soft word there).

Why not learn the ropes and make your money work for you? This is the last thread that comes to mind.

@Mukiri, my uncle used to be in business in the 1980s and 90s which were doing good. Then things took a turn for worse and all businesses collapsed in the late 90s to early 2000s. How would he survive today if he didnt have pension? Even in biz, you need pension as you dont know how things will be tomorrow.
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kiterunner
#5 Posted : Wednesday, February 06, 2013 7:23:29 AM
Rank: Member


Joined: 7/9/2011
Posts: 730
Location: Nairobi
Mukiri wrote:
If there is something life has taught me, no one cares about you, more than yourself. To give someone money in the hope that they'll multiply it and give it back to you, as you want it is... (please insert a soft word there).

Why not learn the ropes and make your money work for you? This is the last thread that comes to mind.



thanks mukiri, this is just purely pension yaani a regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.

and not an investment yaani the action or process of investing money for profit or material result :
our goals are best achieved indirectly
kiterunner
#6 Posted : Wednesday, February 06, 2013 7:25:07 AM
Rank: Member


Joined: 7/9/2011
Posts: 730
Location: Nairobi
@vvs thanks very much i will consider splitting it between jubilee and another (yet to find) fund rather than topping up NSSF
our goals are best achieved indirectly
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