A growing number of Kenyan retirees are struggling to stay financially afloat as they continue to support adult dependents, long after exiting the workforce.

A new nationwide study underscores the deepening impact of youth unemployment and shifting family roles on the country’s aging population.

Findings from the 2024 Pensioner’s Survey reveal that 39% of retirees are financially assisting children aged 25 and above a trend that is steadily eroding the already limited pension income many had planned to rely on.

Conducted by the Retirement Benefits Authority (RBA) across 43 counties, the survey engaged over 500 retired individuals, nearly half of whom reported having at least one financial dependent post-retirement.

While intergenerational support remains a valued aspect of African family life, the study warns that this traditional model is now placing unforeseen pressure on retirement savings many of which were never designed to accommodate extended financial obligations.

“Raising awareness about post-retirement dependency is critical if we want to encourage better saving habits during active employment,” the report advises, calling for targeted financial education and early interventions.

Most retirees surveyed said they were receiving pension payments that replaced just over half of their previous income, leaving them ill-equipped to cover not only their own expenses but also those of adult children and in some cases, grandchildren.

Many of these retirees previously worked in the formal sector and had assumed their retirement income would be sufficient for their personal upkeep.

However, prolonged economic hardship, rising living costs, and a shrinking job market for younger adults have turned many older Kenyans into default providers for their families.

According to the survey, more than half of retirees believe that financial support from children should be optional, not expected reflecting a shifting mindset and growing frustration among the elderly.

Adding to the financial strain is the low uptake of voluntary pension contributions during working years. A staggering 81% of retirees admitted they never made extra contributions to their pension funds, leaving them heavily reliant on standard payouts that were never intended to stretch across multiple generations.

Some retirees reported having saved money through Savings and Credit Cooperative Societies (Saccos), offering a glimpse of financial diversification but this remains insufficient to cover the full burden. Nearly half said they held some Sacco savings, while two-thirds confessed they regretted not saving more while still employed.

For many, the biggest surprise in retirement has been the continued need to finance education and healthcare for family members. Though personal health was cited as the top concern by 32% of respondents, spending on schooling for children and grandchildren also featured prominently, underscoring how deeply family obligations are cutting into retirement income.

The report calls on both government and pension sector players to integrate dependency planning into pre-retirement training. Presently, only 50% of retirees reported having received any financial education before leaving work and for most, the training came just a year before retirement, offering little time for meaningful adjustments.

The RBA is urging policymakers to implement early and mandatory retirement training to help workers develop realistic savings goals and prepare for post-retirement family responsibilities.

As life expectancy rises and younger generations continue to grapple with economic instability, retirees are increasingly being pushed into unplanned roles as long-term financial providers.

The report concludes that unless addressed, this shifting dependency burden could undermine Kenya’s pension system and leave future retirees even more vulnerable.