How You Can You Save For Retirement And Your Child’s Education

Kenya’s pension sector is going through important reforms that promise better financial security for retirees. In August 2024, the National Assembly passed the Pensions (Amendment) Bill, requiring pension payments within 30 days and government departments to submit retirement documents at least 90 days in advance. At the same time, the Retirement Benefits Authority (RBA) launched its 2024–2029 Strategic Plan, which aims to expand pension coverage, improve service delivery through technology, and boost financial literacy.

Despite these positive steps, many retirees still face significant challenges. According to a recent RBA survey, common financial pressures include high medical bills, supporting adult children and other dependents, and paying school and college fees. These realities are forcing many parents to confront a difficult question: how do you plan for a secure retirement while ensuring your children get a quality education?

It may feel like you have to choose one over the other, but with careful planning, both goals are achievable. The key is to start by understanding your financial timelines. Consider how many years you have until retirement and when your child will need college funding. Once you’re clear on your priorities, you can begin to plan more deliberately setting aside funds for both goals in a sustainable way.

The next crucial decision is choosing an insurance or financial provider that offers flexible solutions. Life is unpredictable, and your income might fluctuate. You’ll want a policy that allows you to adjust your premium contributions, reduce your cover in tough times, or even exit early with a surrender value if needed. This flexibility ensures that your plans stay on track, no matter your financial circumstances.

Healthcare is another critical piece of the puzzle. Many retirees underestimate how much they’ll need for medical expenses. Setting up a solid post-retirement medical plan now can help ease that burden later, offering peace of mind as you grow older.

Ultimately, while it may feel overwhelming to save for both retirement and your child’s education, it’s not impossible. With clear goals, the right financial partner, and a bit of discipline, you can secure a future that supports both your dreams and your family’s needs.

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Author is Managing Director and Principal Officer, Liberty Life Kenya: Nkoregamba Mwebesa