Retirement benefit schemes in Kenya have evolved into comprehensive solutions that address far more than savings for old age. The Cytonn Umbrella Retirement Benefits Scheme (CURBS) and the Cytonn Personal Retirement Benefits Scheme (CPRBS) are prime examples of this transformation. These schemes extend their reach beyond traditional retirement planning to offer all-encompassing benefits such as life protection, healthcare and financial flexibility, redefining retirement planning.
One of the standout features of CURBS and CPRBS is the integration of life cover. This provision ensures financial security for the member’s family in the unfortunate event of death. By offering life insurance as part of their benefits, these schemes provide peace of mind, allowing individuals to secure their dependents’ well-being, even beyond their lifetime
Healthcare is another critical area where these schemes excel. With the option to contribute to a post-retirement medical fund, both CURBS and CPRBS address the growing need for access to quality healthcare in old age. Medical costs are a leading cause of financial strain for retirees in Kenya, and having a dedicated fund to cover these expenses is invaluable. It enables retirees to manage medical needs without depleting their savings, ensuring a dignified and comfortable retirement.
Financial flexibility further sets CURBS and CPRBS apart. For instance, a member of the CPRBS can allocate up to 60% of their accumulated contributions toward securing a mortgage. This aligns with Kenya’s housing market dynamics, where property ownership is a key financial goal for many. Additionally, low minimum contributions from KES 1,000.0 monthly for CPRBS and tax relief on contributions of up to KES 30,000.0 monthly make these schemes accessible and advantageous for individuals from various economic backgrounds, including self-employed workers and professionals.
CURBS also caters specifically to employers by simplifying the process of establishing a well-governed retirement scheme for their employees. This not only enhances employee motivation and retention but also offers tax advantages for employers, creating a win-win scenario for all parties involved. Additionally, both CPRBS and CURBS are approved by the Retirement Benefits Authority (RBA) to receive and manage NSSF Tier II contributions. This approval enables employers to contract out of the NSSF Tier II component and redirect these contributions into either CURBS or CPRBS, providing employees with a more flexible and potentially higher-yielding retirement savings option.
CURBS and CPRBS are redefining retirement planning in Kenya by providing multifaceted benefits that cater to diverse needs. Through life protection, healthcare and financial empowerment, they embody a holistic approach, ensuring members and their families are supported throughout life’s journey.
