What do you expect your retirement to be?

By Eric Wanting

Retirement is one of the few stages of life that most people know is coming, yet many do not give it enough financial consideration until it is close. We spend years building careers, supporting families, acquiring assets and pursuing ambitions, but how often do we stop to ask ourselves a simple question: What do we expect our retirement to be?

For some, retirement means travelling, pursuing long-held interests or spending more time with family. For others, it means maintaining independence, meeting healthcare costs and enjoying the peace of mind that comes from knowing the bills will be paid. Whatever the aspiration, achieving it depends largely on the financial decisions we make today.

As Kenya's financial landscape evolves, retirement planning needs to become a more deliberate part of how we think about building wealth. It is not simply about accumulating money during our working years. It is about ensuring that money can sustain us when regular employment income stops.

Retirement is more than a pension statement

One of the biggest misconceptions about retirement planning is that it begins and ends with pension contributions. While a pension is an essential foundation, financial security in retirement requires a broader view of future needs, available resources and potential risks.

People need to consider the lifestyle they want to maintain, their likely living expenses, healthcare requirements, family responsibilities, and the impact of inflation on their purchasing power. A retirement income that appears adequate today may not stretch as far in 15 or 20 years.

Longevity is another important consideration. Retirement could last for several decades, meaning savings must do more than meet immediate needs. They must be managed carefully to provide an income over time, while accounting for changing circumstances and unexpected expenses.

The question, therefore, is not simply how much we will have saved by retirement, but whether those savings and other income sources will be sufficient to support the life we want.

Start early, but start where you are

The earlier people begin saving for retirement, the more time their contributions have to accumulate and potentially benefit from investment growth. Regular, disciplined contributions can make a meaningful difference over the long term, even when the amounts initially set aside are modest.

However, many people face competing financial demands, including housing, education, family support and everyday living costs. Retirement can consequently feel like a distant priority, particularly for younger workers.

The answer is not to wait until every other financial obligation has been met. It is to incorporate retirement saving into a realistic budget and increase contributions as circumstances allow. Those who begin later can still take practical steps by reviewing their current position, identifying shortfalls and developing a plan to address them.

Retirement planning should be viewed as an ongoing financial commitment, rather than a decision reserved for the final years of employment.

Protect what you are building

Saving alone cannot eliminate the financial risks that may disrupt a long-term plan. Illness, disability or the death of a breadwinner can affect a household's income, deplete accumulated assets and leave dependants facing financial uncertainty.This is where insurance plays an important role. Appropriate life insurance can help protect dependants and provide financial support when the unexpected happens. By reducing the potential impact of such events, protection can help families preserve their savings and remain on course towards their long-term goals.

Building wealth and protecting it should therefore be considered together. A financial plan that focuses exclusively on accumulation without accounting for risk may leave individuals and their families vulnerable.

Take ownership of your retirement

Employers, pension schemes and financial service providers all have a role to play in improving retirement preparedness. People need access to suitable products, clear information and practical guidance to help them make informed decisions.

But individuals must also take ownership of their financial futures. This means understanding their pension arrangements, checking whether contributions are adequate, reviewing expected retirement income and seeking professional advice where necessary.

At APA Life Assurance, we believe financial security is built through informed decisions, appropriate protection and consistent planning. Our focus is on helping people protect what matters today while preparing for tomorrow.

Ultimately, the retirement we experience will be influenced by the choices we make long before we leave employment. The most useful time to assess whether we are on course is not when retirement is around the corner, but while we still have time to make adjustments.

So, what do you expect your retirement to be? More importantly, are the financial decisions you are making today helping you achieve it?

The answer begins with an honest assessment of where you stand, a clear picture of where you want to be and a commitment to bridge the gap.

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Eric Wanting is the CEO, APA Life Assurance