How to start planning for a peaceful and fulfilling retirement

In Kenya, up to Sh20,000 of your pension contribution is exempt from taxation. [iStockphoto]

Unlike the other generations who invested all their money in their children, especially in education, as a security for their future, such kind of speculation may not be convenient today. It may have worked during the time when Deputy President Rigathi Gachagua was growing up, as he narrated how his parents educated his older siblings who in turn educated him. Educating one's siblings is just one of the ways the black tax gets to be levied on individuals. It usually happens when one has retired and working members of society have to take care of them. Such a scenario however can be avoided if one has a retirement plan. A good plan for that matter. According to Waithaka Gatumia, chief executive of Centonomy, a financial consulting firm, a good retirement plan should give you cash flow and purpose. Albanus Muthoka, head of pensions administration at Enwealth Financial Services shares what he describes as sins that one should avoid when saving for retirement.

Resist early access to retirement savings