SanlamAllianz Kenya has announced a strategic plan to transform the retirement framework in the nation, promoting its Income Drawdown (IDD) fund as the future solution for retirement income.
Backed by an impressive 283% capital adequacy ratio, the insurer is promoting flexibility and capital growth for retirees in Kenya.
SanlamAllianz’s IDD fund leverages the firm’s heritage as the first to introduce annuities in the Kenyan market.
It acts as a modern, flexible alternative to traditional annuities for retirees seeking independence and durability. Conventional retirement plans have mainly emphasized accumulation and savings throughout an individual’s career; however, SanlamAllianz is tackling the decumulation stage by launching the IDD fund and managing a monthly pension annuity payment of around KSh 150 million.
“Retirement does not mean the lack of a steady income,” noted Jacqueline Karasha, CEO of SanlamAllianz Life Insurance. “Your capital continues to increase with the SanlamAllianz Income Drawdown Fund as you enjoy a consistent income, whether on a monthly, quarterly, or annual basis.” It’s flexible, reliable, and designed to guarantee your retirement years are truly satisfying.
The IDD fund operates like a retirement savings account that remains invested. It allows retirees to make periodic withdrawals while the remaining funds grow through market investments.
She mentioned that the fund aids retirees in various ways, pointing out that in 2024, it attained a net return of 15%, stressing that investments are held in the SanlamAllianz Deposit Administration Fund for optimal growth.
She mentioned that the fund ensures a minimum yield of 5%, guaranteeing that the investment will not dip below the original amount, which offers security in volatile markets.
“Members can choose payment frequencies (monthly, quarterly, or annually) and revise terms each year, up to a maximum of 12% of the fund balance per annum, per RBA guidelines,” she said adding that under the Tax Laws Amendment Act 2024, monthly payouts and benefits from the IDD fund are exempt from income tax, maximising the cash available to retirees.
Beyond high-tier investment products, SanlamAllianz is addressing the 80% of Kenyans in the informal sector.
Through Akiba Plus, a mobile-first digital platform, the insurer has simplified the retirement journey. The platform allows users to self-onboard, consolidate old pensions, and track growth in real-time, ensuring professional pension management is accessible to every Kenyan.
