Pioneer targets formal, informal sector with new retirement plan

Pioneer Assurance is betting on a new individual pension scheme that offers clients a flexible contributory plan to widen its client portfolio in the formal and informal sectors.

The insurer is offering a minimum guarantee of 5 per cent which means the annual interest declared will not go below this minimum guarantee.

This offer by the new scheme dubbed ‘Pioneer Kilele Pension Plan’ is meant to attract hundreds of individuals not yet enrolled in pension schemes while accommodating those in other schemes who wish to open a second line of retirement savings.

The company’s business development manager Cynthia Ng’eno said the steady interest or return declared by Pioneer in the past shows commitment by the firm to want to see individual members grow their funds.

Ng’eno, in a statement, added that even individuals who are already in employer-sponsored schemes and would like to boost their retirement funds are eligible to join the Kilele Pension Plan.

“One contributes an amount of money which is invested towards building their retirement fund. The contributions may not necessarily be a portion of your income. However, you should contribute a percentage of your earnings so that the ultimate benefits would reflect your previous earnings to help preserve the same standard of living enjoyed before retirement,” she said.

Under the new plan, contributors have the option of making monthly, quarterly, half-yearly, annual and ad-hoc payments that suit their income streams.

According to the insurer, contributors have the advantage of using what they have saved in the scheme as secondary collateral for mortgage arrangements.