24HRS Access To NSSF Funds .
24HRS Access To NSSF Funds . Kenyans to Receive NSSF Funds within 24 Hours.
Addressing Delayed Claims
Recent statistics reveal that 84% of Kenyan adults lack social security funds. To tackle this issue, the National Social Security Fund (NSSF) is implementing a new initiative. The CEO, David Korros, acknowledges the fund’s reputation for lengthy claims processing, sometimes up to a year.
Commitment to Efficiency
Korros emphasizes NSSF’s commitment to faster processing, aiming to complete claims within a day by 2027. The goal is clear: beneficiaries should access their funds within 24 hours of filing a claim, regardless of when it’s initiated.
Challenges in Retirement Support
During the unveiling of NSSF’s Corporate Strategic Plan 2023-2027, alarming statistics highlighted the inadequacy of pension systems in supporting retirees. Only 6% of retirees rely on pension schemes, while 60% continue working to sustain themselves.
Urgent Call for Expansion
Prime Cabinet Secretary Musalia Mudavadi stresses the urgent need for NSSF to expand its scope. Currently, the income replacement ratio upon retirement stands at only 40%, far below the recommended 75%. Consequently, many retirees face financial hardships during their retirement years.
Financial Concerns Persist
Despite NSSF’s substantial savings of over Ksh350 billion, concerns over financial management persist. President William Ruto revealed that 1.2 million elderly Kenyans go to bed hungry, with 800,000 living alone. Auditor General Nancy Gathungu disclosed unclaimed benefits totaling Ksh166.83 million by June 2022 and untransferred funds to the Unclaimed Financial Assets Authority, resulting in Ksh3.6 billion in unclaimed benefits.
Addressing Unclaimed Assets
A baseline survey estimated unreported unclaimed financial assets at Ksh241 billion. This highlights the need for robust regulatory procedures to safeguard retirees’ rights. Structural issues such as inadequate estate planning and beneficiaries unaware of their entitlements are also evident.
Promoting Saving Culture
Korros emphasizes the importance of a saving culture among Kenyans, stressing that retirement savings are not akin to taxation. He encourages understanding the importance of retirement savings and increasing the savings rate to approximately 30% of GDP. Additionally, he urges the predominantly young Kenyan population to save for the next 30 years to ensure a comfortable retirement.