Pension & Retirement Calculator — Kenya (2025)

Financial advisors recommend saving 15-20% of your gross salary for retirement. The earlier you start, the less you need to contribute monthly due to compound growth. Include both NSSF, employer pension, and voluntary contributions.

Kenya pension funds historically average 6-12% annually. Conservative balanced funds target 6-8%, while equity-heavy funds may target 10-12%. Use 8% for moderate projections. Past performance doesn't guarantee future returns.

Generally no, except for specific circumstances: emigration, terminal illness, or purchasing your first home. Early withdrawal forfeits tax benefits and compound growth. Plan to keep funds invested until retirement age.

Pension contributions reduce your taxable income, lowering PAYE. You can deduct up to KES 240,000 annually or 30% of your income, whichever is lower. Employer contributions aren't taxed as a benefit. This calculator shows the relief impact.

Absolutely! Employer matching is free money. If your employer matches 6%, contribute at least 6% to get the full match. Not contributing means leaving compensation on the table. Maximize this before other savings.

Pensionable pay is the base salary used to calculate pension contributions, typically your gross salary excluding certain allowances. Some schemes use basic salary only, others include all taxable income. Check your scheme's rules.

Voluntary contributions (beyond employer requirements) boost your retirement savings and provide additional tax relief up to the KES 240,000 annual cap. Great way to reduce tax liability while securing your future.

No. NSSF provides a basic safety net but typically isn't sufficient for comfortable retirement. Supplement with employer pension, private pension (RRSP), and other investments to achieve 15-20% total retirement savings.

You can transfer your pension to your new employer's scheme or to a preservation fund. Don't cash out when changing jobs - keep funds invested to maintain compound growth and tax advantages. Preserve and transfer instead.

Typically 50-65 years, depending on your scheme rules. Many schemes use 55 or 60 as normal retirement age. You can often choose to defer to age 65 for higher benefits. Check your specific scheme documentation.