Treasury Creates New Retirement Policy With Huge Benefits
Treasury Creates New Retirement Policy With Huge Benefits
Treasury Creates New Retirement Policy With Huge Benefits
The government has stated that it intends to review the pension scheme in order to allow all employees to pay into retirement home benefits and retire with health insurance.
According to the National Treasury’s National Retirement Benefits Policy, the majority of workers struggle to find housing and health insurance as soon as they decide to retire from their jobs. Treasury has seen that certain retirement plans have prevented employees or individuals from setting aside funds for the two essential yet vital basic requirements.Retirement homes and health insurance for those over 65 pay for a significant portion of their post-retirement costs.
The increase in people over 65 is putting pressure on the inadequate system already in place for caring for the elderly without proper planning. The policy study notes that when the family support system collapses, the problem gets worse. Treasury CS Prof. Njuguna Ndungu told the media at a press conference at his office that it makes sense for the government to change the law to create a legal framework for retirement programs in order to offer savings plans.
Most importantly, this should encompass retirement communities and the elderly, and policies that incentivize companies and workers to make contributions to Post-Retirement Medical Funds should be implemented.
Currently, a lot of people set aside money from their wages every month to save for retirement. As a result, they will be eligible to receive a monthly stipend to assist them in meeting their basic needs once they retire.
Currently providing retirement benefits is the National Social Security Fund (NSSF), a prominent state-owned entity. Concurrently, the government is attempting to establish regulations that will ensure individuals should begin getting retirement benefits before reaching 65.
