Retirement always feels like a “later” problem not one to start early working on. When someone mentions retirement, you think ‘grey hair, days spent lounging in your chair, travelling, visiting your kids, laughter, memories…’ But what are you doing now to make sure you secure that life? Because your golden years require financial stability.
When you’re focused on rent, school fees, emergencies, or trying to grow your income, the idea of setting money aside for 20 or 30 years from now can feel impractical or even impossible. But delaying your retirement planning doesn’t just cost you time. It costs you money, opportunity, and in some cases, dignity.
Also read: The Importance of Early Retirement Planning: Understanding Pension Fund Options
Let’s look at this from a numbers perspective.
Imagine you start saving KES 5,000 every month at age 25, and your money grows at an average annual rate of 10%. By the time you’re 55, you’ll have contributed KES 1.8 million, but your total retirement pot will be over KES 10 million, thanks to compound interest. That’s the power of time.
Now imagine you delay retirement planning until age 40. To reach that same KES 10 million by 55, you’d have to contribute over KES 25,000 every month. That’s five times more just to make up for lost time.
But it’s not just about numbers.
The longer you wait, the more pressure you put on your future self. If you haven’t built a retirement fund, you may have to work well into your 60s or 70s — not because you enjoy it, but because you have no choice. Your options become fewer. Risk tolerance decreases. And relying on your children or hoping for miracles isn’t a good strategy, it’s a gamble.
On the other hand, starting early gives you options. Even if you can only afford to put away a small amount now, you build the habit. When you start early you can plan for retirement with a small contribution, such as KES 5000, giving you breathing room to do other things with your money.
And remember, retirement doesn’t only mean stopping work. It means freedom. It means having the option to slow down, to rest, to explore, or to help others. But those options need funding.
If you’re in your 20s or 30s, now is the time to start. Even if it’s just a money market fund or a pension scheme with small monthly contributions. If you’re in your 40s or 50s, it’s not too late, but you will need to be more aggressive and intentional. You may need to cut back in some areas or re-evaluate your priorities.
The real cost of delaying retirement planning is lost time, lost growth, and lost peace of mind.
