Did you know that your age should be directly proportional to your fixed income allocation? It sounds obvious, but some people may not be aware of such. The recent report on Kenyan workers also noted these sentiments. The report revealed that many workers invest in land and real estate. However, a vast majority approaching retirement age invest in financial instruments. The retirement age for most employees is 51 to 60.

The Kenyan Institute of Human Resource Management in collaboration with Enwealth of Strathmore University carried out the research.

Moreover, they recommended that the retirees who require constant income should keep their equity to less than 30%. Moreover, the youthful employees in their 20s and 30s should channel at least 20-30% in fixed income assets. Therefore, the same age group should keep less than 70% in equities.

The report also shows that employees in their 40s and 50s should keep between 50%-60% of their income in equities. However, immovable assets allocation dropped among workers although it accounts for half of the investments made.

Based on the above findings, the report recommended the necessity of educating people on financial literacy. Moreover, the report indicated that information on risk profiles and asset alignment should be spread among workers.