Liaison Group launches personal pension fund
Friday, September 4th, 2020
Non-banking financial services provider, Liaison Group, has launched a personal pension fund which aims to solve the savings income challenge which continues to bedevil the Kenyan youth.
The plan, dubbed Mafao Fund, features a tax deductible limit of up to Sh20, 000 per month and allows an individual to build a savings income by making regular contribution to the scheme during their working life.
Liaison Group head of pensions, Michael Mitau, says with as low as Sh50 per day, Kenyans from all walks of life are being given an opportunity to define the future of social insurance.
“With Mafao Fund, we look forward to customers embracing the convenience and flexibility of this affordable pension scheme and the special benefits that come with it,” he said during the product’s launch in Nairobi yesterday.
“One of the biggest worries for people is maintaining their existing lifestyle when they leave employment.
Very few people belong to pension schemes or have individual savings plans,” he added.
Barring the national social security funds across East Africa, which are compulsory, Mitau said there is need to aggressively become agile in anticipating and adapting to our clients’ needs.
He said the fund has been conceived by the need to address the evolving investment needs.
The fund offers a minimum guaranteed interest of four per cent, flexibility when a customer wants to transfer from one scheme to another and a life insurance rider on the request of a customer.
“Liaison believes that while there has been an inherent focus on accumulation and compounding wealth, it is now time to shift the focus to those entering the ‘decumulation’ phase of their life.