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HomeEDUCATIONMagoha Roots For Pension Civic Education On Teachers, Parents

Magoha Roots For Pension Civic Education On Teachers, Parents

Magoha Roots For Pension Civic Education On Teachers, Parents.Prof George Magoha, Cabinet Secretary for Education, has urged pension scheme trustees to educate Kenyans on the importance of retirement planning.He urged stakeholders to create a comprehensive and robust policy governance framework to achieve this goal.“Life in retirement can be especially challenging for persons who for many years when they were working were used to receiving a regular monthly income but at retirement, many are forced to live on reduced incomes and others on erratic incomes, even as they cope with advancing age and vagaries of ill health that come with it,” said Prof Magoha. On Wednesday, the CS addressed over 300 delegates at a three-day Zamara retirement conference in Malindi, which also served as the launch of Zamara’s Angaza program, which will focus on providing financial literacy to the youth.Because of the rising cost of living, the majority of people must dig deeper to find extra money to save for the future. The problem is exacerbated by low levels of financial literacy, which endangers self-directed pension systems that rely heavily on private savings in addition to employer or government-provided savings.However, pension systems are increasingly requiring individuals to make key decisions about how much to save and when, necessitating a level of financial literacy that many people lack. Many people are ill-equipped to manage their own pension savings because they are unaware of how interest and returns compound over time, how inflation affects savings, and how holding a diverse portfolio of assets can be beneficial and diversify risk.ALSO READ:Women, the young, and those who cannot afford or choose not to seek financial advice are particularly vulnerable.Given the current economic climate, it is unrealistic for workers to expect that saving 5% of their pay each year of their working life will provide a retirement income comparable to their current level of income.Unless drastic steps are taken to address the low savings culture, the majority of workers will retire in abject poverty, despite the fact that the Constitution states that “everyone has the right to social security.” The goal of social protection is not just survival, but also social inclusion and human dignity.Policies to encourage retirement and old-age savings should ideally use both tax incentives and coercion to promote social protection. To increase retirement savings, the government should implement automatic enrollment.Zamara staff will devote their time, resources, and knowledge to assisting parents and teachers in improving youth financial literacy.Magoha Roots For Pension Civic Education On Teachers, Parents

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