Why Save for Retirement?
- No matter how active we are today, there will come a time when we will have to retire. However our living expenses such as food, medical care, housing and electricity do not retire. Saving in a retirement benefits scheme now helps us to save and create the income needed in retirement to cater for these expenses.
- It is a reality that parents will not be able to depend on their children for their upkeep in old age due to a breakdown in the traditional systems that provided security in old age.
- We are today living much longer due to advances in medicine. You will therefore need more money to cater for the expected longer life in retirement.
- Money saved for retirement may also be used as security for securing funding for other immediate financial commitment needs like housing or school fees.
How to Join the Scheme
- Complete an Application and Nomination of Beneficiary Forms (available at Liaison Financial Services (Rwanda) Limited offices)
- A copy of your National Identity Card or Passport
- Liaison Financial Services will assign you a unique identification number for all correspondence or transactions.
Contributions to the Scheme can be made via any of the following means:
- Direct Bank Transfers
- Mobile Money
Our other Services include:
- Benefit Administration
- Investment Management
- Retirement Savings Consulting
- Trustee Advisory
- Financial Education and Training
Who can join the Scheme?
Anyone over 18 years of age who is either employed or self-employed can join the Liaison Pension Scheme.
Membership is open to:
- People working in organizations that do not have a retirement benefits scheme. People in seasonal or contractual employment.
- Self-employed people.
- Citizens working outside Rwanda.
- Members of existing schemes who are changing jobs and would like to transfer their pension funds from the employer sponsored scheme.
- Members of existing pension schemes who want to enhance their retirement savings.
- Small and medium sized employers who do not opt to set up a stand-alone pension scheme.
- People working in Non-Governmental Organizations.
The LPS is the most cost effective and flexible means of providing retirement benefits.
- The scheme is approved under the Law Establishing Taxes on Income which means investment income is exempt from corporate tax;
- It is a defined contribution arrangement where you can decide on the amount that you contribute and even vary the amount at any time;
- Members accounts are credited fully with net investment income earned on contributions; and
- There is no penalty or charge on withdrawal and participants may withdraw at any time, access their benefits or transfer to any other approved pension scheme.