Most Kenyans to fall short of retirement wealth target

Most Kenyans are unlikely to have accumulated enough money to give them a comfortable life after they hit 60 years. This despite a strong desire to invest and a high appetite for risk.

A new report by Standard Chartered said more than half of Kenyans will not be within the wealth levels they had set to achieve by that age.

The bank was working with a wealth expectancy of Sh63.6 million but noted that 66 per cent are unlikely to hit this target. This is despite a high drive to invest, which appears not to be giving the desired returns.

“With a wealth expectancy of Sh63.6 million many Kenyans will fall short of their aspirations: by 60 years of age, 66 per cent of Kenya’s savers will be less than half way to achieving their wealth aspiration, while almost a third (32 per cent) will be more than 80 per cent away from their target,” said the report.

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The Standard Chartered Wealth Expectancy Report 2019 further shows that savers in Kenya combine simple savings products with stocks and shares to achieve their goals.

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Nearly six out of 10 Kenyans said they want to invest more (58 per cent), but they lack access to financial advice.

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The study also noted that the desire to invest or start businesses was strong in Kenya compared to other countries such as India, China, Malasyia and South Korea, which were included in the survey.

“Starting or funding a business is a top financial goal for nearly three in 10 Kenyans… Kenyan wealth creators are more driven to start or fund a business than individuals in any other market in this study, with more than a quarter (27 per cent) stating that this is one of their top three financial goals,” said the bank.

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“Our study shows entrepreneurship is led by Kenya’s emerging affluent rather than their wealthier counterparts, with a third considering business a top priority.”

Among the key things that drive Kenyans to save include financing their children’s education, buying land and investing in property.

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