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Kenya: 45% of Rich Citizens Planning Early Retirement, Study Finds

Nairobi — Forty-five percent of affluent and high net worth (HNW) Kenyans are said to be planning to retire before the age of 65 years, a study conducted by Standard Chartered has said.

The expectancy 2021 bridging the confidence gap study which was conducted among 1,598 respondents between June 30 and July 26 2021 noted that another 22 percent had set a new financial goal of retiring early.

Notably, it noted that 17 percent of people do not currently save/invest for retirement.

"For those that do, 'investment income' (62percent) and 'cash savings'(38percent) are the most common expected sources of income," the study noted saying it highlights a disconnect between current actions and future expectation.

COVID-19, the survey, added had prompted Kenyans to shift their goals with 73pc affluent Kenyans now focused on health as compared to the wealth and home management which scored 66 and 68 percent respectively.

Meanwhile, another 59 percent of the respondents reported lower confidence about their finances occasioned by COVID-19 effects compared to 29 percent who reported increased confidence.

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The report noted that the confidence gap' was holding back many from meeting their goals as 96 percent of the respondents said they had reset their life goals and were unable to take necessary actions to achieve their new goals.

"When asked about factors that are making it harder for people to pursue their new goals, the three most selected were 'volatility in financial markets (38%), 'fear of poor returns on investments (37%), and 'insufficient information about specific investment opportunities (32%)," the survey added.

It further noted that 43 percent of the respondents Kenyans had opted for cryptocurrency in order to diversify money management options.

The survey was conducted among respondents across 12 markets including China, Hong Kong, India, Indonesia, Kenya, Malaysia, Pakistan, Singapore, South Korea, Taiwan, UAE, and the UK.

Artmotion S.Africa

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