Kenyan workers are investing in real estate and land
According to a recent report, Kenyan workers are mostly investing in land and real estate for their retirement.
The report was released by financial services provider, Enwealth, Strathmore University, and the Institute of Human Resource Management.
The findings also state that there are less assets in business ventures from Kenyans reaching retirement, from the ages of 51 to 60.
The same group are, however, investing more in financial instruments.
The report argues that these figures demonstrate a need for investment information in financial literacy, aligning asset allocation and risk profiles.
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For reviewed age group, the allocation to immovable assets has slightly dropped, but still accounts for 50% of investments.
“An easy-to-remember rule of thumb is that your fixed income allocation should be equal to your age,” the report notes.
“So, if the member is in 20s and 30s, keep no more than 70 per cent in equities and the rest in fixed income assets.”
“Mid-career professionals in their 40s and 50s should have between 50 to 60 per cent in equities, while retirees who need regular income should start reducing their equity exposure to around 30 per cent.”