Seven out of 10 Kenyans say they are not adequately prepared for a comfortable retirement, highlighting a growing gap between the desire to save for the future and the financial realities facing households today.
The findings are contained in the inaugural SanlamAllianz Kenya Retirement Benchmark 2026, released in Nairobi under the theme “Kenya Before It Ages.” The study examines retirement preparedness among working-age Kenyans and retirees, revealing how competing financial priorities, limited emergency savings and the withdrawal of retirement funds can undermine long-term financial security.
Despite widespread recognition of the importance of retirement planning, many respondents struggle to maintain consistent contributions, preserve their savings when leaving employment and determine how much income they will need in later life.
“Retirement preparedness requires more than an understanding of why saving matters. It requires financial solutions that recognise the pressures people face throughout their working lives and help them protect their future even when circumstances change,” said Jacqueline Karasha, Chief Executive Officer and Principal Officer of Sanlam Allianz Life Insurance (Kenya) Limited.
Household pressures continue to crowd out retirement savings
Family responsibilities emerged as the leading obstacle to retirement saving, with 44 per cent of respondents citing household and family expenses as a barrier. A further 37 per cent pointed to low or irregular incomes, while 24 per cent identified debt repayments.
The findings underscore the difficult choices many Kenyans face between meeting immediate needs and preparing for the future. Nearly two-thirds (62 per cent) said supporting dependants reduces the amount they can save, while 39 per cent reported that they could meet basic household expenses for no more than two months if their income stopped.
Financial pressures are also forcing some people to interrupt their retirement plans. In the past year, 23 per cent of respondents had withdrawn from savings or reduced retirement contributions to manage financial difficulties. The proportion rose to 29 per cent among earners aged 20 to 39.
These findings point to the importance of building financial resilience alongside retirement savings, including maintaining emergency funds and developing savings strategies that can accommodate changing incomes and family obligations.
Retirement savings at risk when Kenyans change jobs
Leaving employment or a business can present a critical turning point for retirement security. According to the Benchmark, 53 per cent of respondents who left a job or business while holding retirement savings withdrew at least some of the money, while 26 per cent cashed out their entire savings.
Only 32 per cent preserved or transferred the full amount into another retirement arrangement. One-third of those who accessed their savings used the money to establish or support a business or farm.
While such withdrawals may address immediate financial needs or create opportunities for income generation, they can also reduce the funds available to support individuals in retirement. More than half (53 per cent) of respondents who withdrew their savings later regretted the decision, despite 65 per cent saying they understood its implications at the time.
The transition out of employment also exposed a gap in support, with one in five respondents receiving no assistance when making decisions about their retirement funds.
Ms Karasha said the findings highlight the need for stronger guidance at key financial decision points.
“People should not have to navigate important retirement decisions without the information and support they need. Making it easier to preserve savings, understand the long-term consequences of withdrawals and access appropriate guidance is essential to improving retirement outcomes,” she said.
Many savers lack a clear picture of retirement income needs
The study also highlights a gap between accumulating retirement savings and understanding how those savings will support life after work.
One in five working-age contributors does not know how much they have saved, while only 29 per cent know the monthly income they will require during retirement. In addition, 45 per cent had never heard of income drawdown, a method of accessing retirement savings through regular withdrawals.
At the same time, 51 per cent of respondents said they would prefer a guaranteed monthly income for life, reflecting the importance many place on predictability and financial stability in retirement.
Planning for healthcare costs remains another significant concern. More than half of respondents (53 per cent) have no funded plan to meet medical expenses after retirement, leaving a potential gap in their future financial preparedness.
The findings reinforce the need to help savers look beyond account balances and consider how their accumulated funds can translate into sustainable income, taking into account living expenses, healthcare needs, inflation and longevity.
“Retirement planning must focus on the income people will need throughout their later years, not simply the amount they have accumulated. Helping individuals understand their options and plan for sustainable income is an important step towards greater financial security,” said Jonathan Stichbury, Managing Director and Chief Executive Officer of SanlamAllianz Investments Limited.
The research also found that 88 per cent of respondents would continue working or running a business even if their retirement income were sufficient to meet their needs, suggesting that work may remain an important part of retirement for many Kenyans.
Informal employment calls for more flexible savings solutions
Kenya’s changing employment landscape presents additional challenges for retirement planning. According to the Kenya National Bureau of Statistics, the economy grew by 4.6 per cent in 2025, with the informal sector accounting for 87.2 per cent of new jobs.
Among working respondents in the Benchmark, 39 per cent said their earnings fluctuate from month to month. Meanwhile, 51 per cent of informal workers expressed a preference for making retirement contributions through mobile money.
These findings highlight the need for retirement solutions that accommodate irregular earnings, flexible contribution patterns and accessible payment channels, enabling people to save consistently even when they do not receive a fixed monthly salary.
However, digital accessibility must be accompanied by strong safeguards. Nearly half of respondents (45 per cent) said they had lost money or personal information through a digital financial scam, rising to 54 per cent among younger respondents.
Trust remains central to retirement product adoption, with respondents identifying a trusted provider or regulator as the leading feature that would encourage them to take up a retirement product.
An opportunity to strengthen retirement readiness
The SanlamAllianz Kenya Retirement Benchmark is intended to provide an annual assessment of retirement preparedness, track changing attitudes and behaviours, and inform discussions on improving financial security in later life.
Dr Nyamemba Patrick Tumbo, Group Chief Executive Officer of SanlamAllianz Kenya, said Kenya has an opportunity to strengthen retirement preparedness while its population remains relatively young. “Kenya has an opportunity to address retirement preparedness early, before the pressures associated with an ageing population become more pronounced. By measuring progress and encouraging collaboration across the financial services sector, we hope to contribute to solutions that help more Kenyans achieve greater security and independence in retirement,” he said.
SanlamAllianz plans to repeat the Benchmark annually to monitor developments in retirement preparedness and identify areas requiring further attention.
The findings point to the importance of a more holistic approach to retirement planning—one that combines consistent saving, preservation of retirement funds, financial education, protection against unexpected expenses and access to appropriate retirement income solutions.
For Kenyans, the message is clear: preparing for retirement involves not only saving for the future, but also making informed decisions throughout one’s working life to ensure those savings can provide financial security when they are needed most.
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