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How to Save for Your Retirement with NSSF Kenya

Vincent Nyoike
Vincent Nyoike How to

The National Social Security Fund (NSSF) is a pension scheme you can use to save for your retirement. You must be a member to enjoy the benefits and grants. You start to enjoy the benefits when you hit the age of 55 years or when you retire. You cannot access the savings in times of emergencies. This review will provide you with details about how you can save for your retirement using NSSF.

How to Register for NSSF Membership

You can register for NSSF membership if you are 18 years or above. You also need to be earning to make monthly contributions. You can register as an employed member and your employer will be deducting monthly contributions from your salary and remitting it to the NSSF. On average, 5% is the percentage of your income that goes to NSSF contributions. Normally, the contributions range between Ksh 360 to Ksh 1080 per month. The employer also contributes an equal amount like yours.

Read also: Save for your health with NHIF. 

How to Register for NSSF as an Employed Member

To register as an employed member, you need to visit any of the NSSF offices across all counties. You should carry your Identity Card or Passport and a letter from your employer. Your details will be captured and you will be issued with the NSSF membership card. You need to provide your employer with your NSSF number indicated on the card. This is to allow your employer to make contributions to your account. You can also make contributions using your Mpesa.

How to Register for NSSF as a Self Employed Member

You can also register for NSSF if you are self-employed. You are the one who will be making contributions either using your Mpesa or through NSSF offices. To register, visit the NSSF office nearest you and carry your ID card or passport. You will also need to pay Ksh 200 as an activation fee. Your details will be captured and you will be provided with a membership card. You can then start making contributions.

Read also: How to plan for your retirement early. 

NSSF Online Registration

You can register on NSSF online without having to visit their offices. To register through the NSSF self-service portal, follow these steps:

  • Visit the NSSF self-service portal
  • Select Member self-service and then click member registration
  • Enter your details and confirm that they are all correct.
  • Then click Save
  • Print the application notification and then visit the nearest NSSF office nearest you
  • You will be issued with NSSF PIN from the office
  • Use the PIN to activate your account

How to Make NSSF Contributions Using Mpesa

To make contributions to your NSSF account, you need to be a Mpesa registered member. You also need to have sufficient funds in your Mpesa account to cover transaction costs.

  • Go to your Mpesa Menu and select Lipa na Mpesa.
  • Select Pay Bill and select Enter Business Number
  • Enter NSSF Business Number which is: 333300
  • Then select Enter your account number
  • Enter your NSSF Number as the account number
  • Enter the amount and then enter your Mpesa PIN and press Ok
  • You will then receive a confirmation number

Benefits of Saving for Retirement with NSSF

The benefit of the NSSF is that cushions retirees post-retirement. Members get a regular income after retiring. It is important to note that the benefits you will be receiving from NSSF may not be enough to sustain you after your retirement. It is therefore important that you look for other ways to plan for your retirement like opening a savings account.

What Happens to the NSSF Account if You Lose Your Job?

If you lose your job, you will continue to beg a member of the NSSF. Even when you are not making contributions, your earlier contributions will continue earning interest. You can then continue making contributions through Mpesa or NSSF offices when you get another job.

How to Receive NSSF Benefits and Grants

Members are eligible for NSSF benefits and grants when they hit the age of 55 or when they retire. You also need to be aware that NSSF benefits are liable to income taxation. Also, the interest that your savings will have earned will also be taxed.

 To start receiving NSSF benefits, visit the nearest NSSF office. Make sure to carry:

  • A retirement letter
  • NSSF membership card
  • National identity card or passport
  • Bank details

How Can I Check My NSSF Contributions?

You can check how much you have contributed to your NSSF account. You can ask for NSSF statements from any of their offices. The NSSF statements are free on members' demand. The statement also shows the interest that your contributions have earned over the years.

Read also: Business ideas for retirees in Kenya. 

Final Word

The NSSF is a great way to plan for your retirement. However, it should not be your last resort. NSSF benefits are not significant and you cannot rely on them wholly for your retirement. You should seek other ways in preparation for retirement. Also, the NSSF benefits are only available after you retire. As such, you may not access the money in times of emergencies if you have not retired.