Cytonn Asset Managers Limited, CAML, the affiliate of Cytonn Investments Management Plc has launched its Pensions Business.
The pensions business will consist of three products including personal retirement benefits, umbrella retirement benefits scheme and the income drawdown fund.
The Cytonn Personal Retirement Benefits Scheme will mainly target self employed individuals in the informal sector, and professionals such as doctors and lawyers, who don’t belong to any pension scheme and are seeking a vehicle to save for their retirement.
On the other hand, the Cytonn Umbrella Retirement Benefits Scheme will target employers who don’t have a pension scheme of their own and would like to enable their employees save for their retirement in an arrangement where the employer and employee both contribute.
The Cytonn Income Drawdown Fund will target retiring members of pension schemes by offering them the alternative of investing their accrued retirement benefits and be assured of periodic income based on frequency of their choice.
Speaking during the launch, the head of pensions at CAML David K. Mwakitele noted, “We remain committed to supporting the Authority in enhancing education to the public on the importance of saving for retirement to secure their financial future post-retirement and consequently enabling more people to save for their retirement.”
Former Retirements Benefits Authority (RBA) CEO Dr Edward Odundo noted that retirees suffer the most when they had not planned for their retirement.
Currently, the pensions penetration stands at about 20 percent of the labour population.
Mr Charles Machira, who is the Chief Manager of the Supervisions Department at RBA challenged Cytonn to develop products suitable the informal sector whose participation the retirement benefits industry in less than 1%.