To the retirees, Retirement Benefits Schemes provide an invaluable vehicle for accumulating savings during the life cycle of earnings and provides an insurance mechanism of a steady stream of payoffs at retirement period, which allows a decent living standard in retirement. This I regard as an important savings-investment cycle. But it works well when the financial sector also works well.
To the economy in general, Retirement Benefits Schemes provide a vehicle for pooling financial resources for investment. For instance, I am made to understand that Retirement Benefits Schemes in Kenya have acquired assets amounting to KSh212 billion. This is a significant amount of savings. Retirement Benefits Schemes’ assets require security in two senses.