Saving for retirement is the best thing especially for someone employed. Even if NSSF saves on your behalf, you should also have an independent saving plan. Below are the benefits and terms of Britam Individual Retirement Plan:

Types of Individual Retirement Plans

There are two retirement savings options that will make sure that you’ll have the income you need as you head into retirement.  The key difference between the two is the mode of payment at retirement.

  • Pension plan –A third of the accumulated benefit will be paid as a single lump sum amount and the remaining two-thirds.
  1. Paid as a regular income for life upon retirement.
  2. Can be withdrawn from the fund in a minimum of 10 years.
  • Provident plan –The accumulated amount will be paid in one single lump sum upon retirement

Your savings will grow exponentially over time while earning interest. On attainment of your selected retirement age, Britam will pay your accumulated retirement benefits in accordance with the option selected at the inception of the policy. 


  • Monthly contributions are tax deductible. The monthly contribution is tax deductible at source i.e. your contribution will be deducted from your gross pay before P.A.Y.E is computed. The current maximum tax-deductible contribution is Kshs. 20,000.00 per month or a third (1/3) of monthly income whichever is lower.
  • Tax-exempt investment income: The interest earned is exempted from tax in full.
  • Compound interest: Compound interest accrues on the contributions received, leading to a faster accumulation of your fund.
  • Investment income: Contributions are prudently invested to ensure high returns with a guaranteed minimum compounded rate of 5% per annum.
  • Portability: The plan is portable and is not affected by changes in employment.
  • Flexibility: You can vary the contribution made to the plan from time to time subject to a minimum of Kshs. 2,000 for every payment. You can also vary the frequency of making contributions to suit your financial.
  • Pension-backed mortgage: A member can assign up to 60% of the accumulated fund towards financing the purchase or construction of a house.
  • Guaranteed Capital and Interest: Capital (accumulated benefits) is guaranteed against any form of reduction. And Interest rate is guaranteed not to fall below 5.00% p.a.
  • Variety: A choice between a Pension and a Provident Fund. Pension Fund pays a maximum of a third (1/3) of accumulated benefits as a single lump sum and the remaining two thirds (2/3) purchases a pension annuity which pays a guaranteed regular income for life or a Provident Fund pays the accumulated amount in one single lump sum.
  • In case of death prior to retirement age, the total accumulated amount becomes payable to appointed beneficiaries.

Policy feature

  • Flexible contributions: Contributions can be fixed or varying; made monthly, quarterly, semiannually or annually.
  • The minimum contribution under the policy is Kes 500. There is no upper limit on contributions.
  • Britam will provide you with a personalized individual retirement plan account and keep track of your savings and interest earned.
  • A personalized statement of savings will be sent to you at the end of each financial year or any other time on request.
  • A member can access accumulated funds at any time subject to the prevailing regulations

Transfer of deferred funds

Upon leaving employment before the age 50, you can take out up to 50% of the fund value,where an employer makes contributions on behalf of the employee or up to 100% where the member is the sole contributor.

Benefits for transferring deferred funds to an Individual Retirement Plan

• Tax is charged on withdrawn amount only.

• Visibility – You can keep track of the benefits easily without having to go back to your former employer.

• Allows consolidation of deferred funds from different employers.

• Cost savings – You can avoid some expenses associated with occupational schemes

that are not charged in individual plans.

• Allows for top-up – Additional contributions can be made to the plan that would otherwise not be allowed by a previous employer.

• We are able to guide our clients if they are transferring funds from another provider to Britam by leveraging on our expertise to drive the process in a manner that is smooth and seamless

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January 31, 2024

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