• Happy Mashujaa Day

Pension Plans

#1
Hey guys just a follow up on my earlier thread on pension products. I got the below infor from old mutual.

Our Personal Pension Plan- is Ideal for any person above 18 years with a minimum contribution of Kshs. 500.00 per month. Contributions to the scheme are tax deductible up to 30% of pensionable salary or a maximum of Kshs20, 000 per month which is Kshs240, 000 per annum.

Is that a knock off plan ama that is how pension products are usually structured?

Is there a company that offers a better plan...i am still looking around and any assistance and/or info would be greatly appreciated...ama i just stick with NSSF?
 
Last edited:

kah tony

Village Elder
#2
I think here the tax deductible features is details in tax code with KRA. Has nothing to do with the pension product being sold.

Pension contributions are usually tax deductible and reduce your net income tax liability.

Hope I understood your question.
 

Ubongo

Village Elder
#5
Haiya mzee, uko karibu kuretire.
On a serious note, the window and children pensions scheme in the payslips is a colonial deductions that have been passed by time. Rarely do the people supposed to benefit do. Reason behind, lack of knowledge and the hardship involved before they get their funds.
 
#6
I think here the tax deductible features is details in tax code with KRA. Has nothing to do with the pension product being sold.

Pension contributions are usually tax deductible and reduce your net income tax liability.

Hope I understood your question.
Ok thanks. I was not too sure if its usually taxed. Isnt it your employers obligation to set aside a pension by law...ama its optional?
 
#8
Haiya mzee, uko karibu kuretire.
On a serious note, the window and children pensions scheme in the payslips is a colonial deductions that have been passed by time. Rarely do the people supposed to benefit do. Reason behind, lack of knowledge and the hardship involved before they get their funds.
Yea just coming to realise that. Its too much of a hussle and its basically giving those pension schemes free money!
 
Last edited:
#12
Don't know details kabisa but employer does not deduct the max from salary. Hapo inasema upto 30% of pensionable salary. Meaning kama you're contributing 7% you have 23% left of contribution room.
Eish, I think I will have to do more research on this! Thanks, your points are eye openers for me in this field!
 

mpotorico

Village Elder
#14
Haiya mzee, uko karibu kuretire.
On a serious note, the window and children pensions scheme in the payslips is a colonial deductions that have been passed by time. Rarely do the people supposed to benefit do. Reason behind, lack of knowledge and the hardship involved before they get their funds.
If you are talking about the wcps in Govt pension then you are so wrong. Coz compared to the deductions made @ 2% of salary and the payment for life to the widow, you can't get a better deal. It is simple to apply. Just fill a widow declaration form thro the local chief and present to pension department within two months the widow is in payroll for life.
 
O

Okiya

Guest
#18
Hey guys just a follow up on my earlier thread on pension products. I got the below infor from old mutual.

Our Personal Pension Plan- is Ideal for any person above 18 years with a minimum contribution of Kshs. 500.00 per month. Contributions to the scheme are tax deductible up to 30% of pensionable salary or a maximum of Kshs20, 000 per month which is Kshs240, 000 per annum.

Is that a knock off plan ama that is how pension products are usually structured?

Is there a company that offers a better plan...i am still looking around and any assistance and/or info would be greatly appreciated...ama i just stick with NSSF?
What those guys conveniently avoided to tell you is that when you retire, your pension will be taxed before you receive it.
 

Top