💰 Whether you’re a decision-maker for an organization seeking to secure employees’ financial future, or an individual looking to build your own safety net, choosing the right pension program is one of the most pivotal decisions you can make for your future self. In terms of the local market, there are plenty of options beyond the run-of-the-mill mandatory social ins., especially with private ins. companies entering the fray with diverse programs offering additional benefits and higher financial returns.

In this week’s edition of The Enterprise Guide, we’ll be filling you in on the basics you need to make an informed decision about your retirement plan.

Choosing the right program

First things first, you must identify your needs. If you’re choosing a pension program for your company, first determine details such as the number of employees to be included, the available budget, the target return of the program, and the nature of the contribution (optional or mandatory). Will the company bear the full cost, or will it be shared with the employee?

Basics identified? Call up your bank to inquire about the plans they offer through one or more ins. companies. Additionally, banks themselves offer dedicated retirement accounts, alongside retirement programs available through unions and major institutions via private ins. funds. We recommend seeking the help of a consultant or an ins. broker certified by the Financial Regulatory Authority (FRA) to define your goals and plans before searching for suitable programs.

Choosing a program shouldn’t depend on just the subscription cost; several criteria should be considered:

• Annual rate of return: Compare the average expected return between different programs.
• Flexibility: Can the contribution amount be modified, or savings withdrawn or transferred?
• Administrative fees: Determine the cost of managing the program compared to the benefits provided.
• Transparency: Evaluate periodic reports and the credibility of the ins. company or bank.
• Additional benefits: Such as life ins., critical illness coverage, or premium waivers in case of disability.

Cost indeed matters, but it varies from one program to another based on the volume of periodic contributions — monthly or annually — and benefits added during or after the program term. The cost-bearing mechanism also differs between programs fully funded by companies and those borne by both employees and employers.

With homework done and experts consulted, some companies may choose to pilot the program with a limited number of employees before introducing a complete rollout. We’d suggest, however, that it’s best not to delay — the earlier a pension program starts, the higher the value of retirement savings. We’d also recommend reviewing your program of choice’s annual performance and consider adjustments whenever necessary.

Top programs in the market

#1- Allianz Egypt: Allianz offers programs for companies and individuals in both EGP and USD. The group retirement plan allows specific contributions from the employee, the company, or both, and features flexibility in determining contribution percentages with the possibility of boosting the pension amount. The company invests the monies in various funds to achieve cumulative returns. The individual retirement program includes life ins., total disability risk, and critical illness coverage, allowing for premium adjustments, withdrawals, and the choice of a diverse investment portfolio.

#2- Misr Life Ins.: Through its pension policy, the company provides individual subscriptions to obtain a guaranteed retirement amount through combined ins. protection and savings.

#3- Mashreq Bank: The bank collaborates with MetLife to provide a USD retirement savingsplan spanning 1-35 years. It offers a lump sum in case of death or total disability, with monthly income payouts in certain cases, and flexibility in determining coverage duration and contributions.

#4- HSBC offers various retirement programs as part of the wealth management plans it provides to its clients.

#5- Banque Misr: The Mostakbalak for Retirement program targets individuals, whereas the group retirement program for employees deducts a specific percentage of income to put in an investment account with annual return.

#6- Emirates NBD: Developed in partnership with Allianz Egypt, the bank’s Ro’ya programs are dedicated to long-term savings and ins. protection. Contributions are paid in either EGP or USD — at a minimum of EGP 300 or USD 50 per month — for 5-35 years. The plan also includes an ins. sum in case of death or disability, with the possibility of liquidating the amount after the second year. The plan features flexible premium payments and annual adjustments.

Other long-term investment paths

Why invest for retirement? Relying on a government pension alone is no longer sufficient given rising inflation and price volatility. Early investment — particularly in assets that retain or increase in value over time — gives you the chance to build a sustainable financial balance for the sunset years.

Go for gold: The yellow metal is a safe haven during times of inflation and market volatility. Buying it regularly over the long term can be a way to protect wealth from the erosion of purchasing power. While prices fluctuate, gold remains a preferred tool for many Egyptians to maintain the real value of savings. Here are the most prominent gold investment funds with low minimum subscriptions and returns linked to global gold price movements:

• Azimut Gold Fund: One of the largest gold funds in the market, holding the largest share of local gold fund assets.
• Sabayek Fund (Beltone Evolve): Managed in cooperation between Beltone Financial and Evolve Investment; it allows entry with small amounts.
• Dahab Fund (NBE-Evolve): A gold fund with significant growth since its launch, providing flexibility in selling and redemption.

Real estate is also a high-return, long-term investment: While high property prices were once a barrier, fractional ownership through real estate investment funds has become a solution. The fractional real estate ownership market includes many players:

• MNT-Halan & Azimut: A fund offering digital certificates. Purchases are made online through Halan, AZ Invest, or Thndr without a brokerage account. Each issuance of the fund includes a mix of commercial, residential, hotel, and administrative properties from multiple developers.
• Bonyan: Listed on the EGX and operating as a specialized real estate owner, Bonyan allows investments by purchasing the stock BONY.CA through your brokerage account. The company invests in Grade A commercial real estate (administrative and commercial) in East and West Cairo, including luxury offices and malls with USD-pegged rents.
• SAFE: A direct ownership model allowing the purchase of a specific share in a single apartment or office, with shares distributed via the SAFE Investments app by Madinet Masr.

ALSO- Private ins. funds are among the less common options for individuals, but are of increasing importance in retirement planning. These funds are savings systems that collect member contributions and invest them to achieve a return added to savings upon reaching retirement age. Azimut Investments Egypt provides private pension fund programs with long-term savings solutions for subscribers.