I got a pension of Ksh 4 million, this is what I did with the money


This 67-year-old man earned a pension of Ksh 4 million. He has explained how he utilized the money which is now generating income for him.

“I retired in 2016 after serving for a private company for 30 years. My pension was Ksh 4 million. I was paid the money in lump sum, highest amount of money I have never touched ever since I was born.

At first I never knew what to do with the money, but after visiting a financial advisor I managed to get 1 or two things, the advice helped me a great deal.

I didn’t have a ready plan on how to spend money, but I wanted not to remain broke after retirement. I took Ksh 1 million and invested in money market fund. The money generates income of Ksh 12,000 to Ksh 20,000 per month.

Before retiring, I had saved Ksh 450,000 in a Sacco. I added Ksh 500,000. My total savings are Ksh 950,000. Every year, I make Ksh 250,000 to Ksh 350,000 worth of dividends. This money has helped me a lot. Sacco dividends help me every year, this is the money I budget for in a year.

I remained with Ksh 2.5 million. Since I didn’t want to remain idle in the village, I started dairy farming. I purchased 1 acre of land for Ksh 1 million and bought two cows. The land helps me to graze the cows. Though I don’t earn a lot of money from this venture, I am busy.

I also purchased a second hand car for Ksh 350,000. This is the one I used when I attend functions or when going to shopping.

After retiring, I realized that I am now on my own, I will be footing hospital bills alone. The idea of getting fundraising from my co-workers is out of my picture. I took a medical cover from an insurance company. I pay Ksh 2,500 monthly. Whenever I am sick, the foot my bills. This prevents me from spending money from my savings

What helped me a lot is that I had built a home in the village. I don’t pay rent. I also don’t have responsibility of taking my kids to school, all my children are adults. The money I make is for myself.

I exercise a lot and eat healthy, this has enabled me to live a healthy life.

From my various investments, I am able to make Ksh 50,000 to Ksh 70,000 monthly. I saved myself from becoming a beggar”.


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