SanlamAllianz Kenya has unveiled a strategic initiative aimed at overhauling the retirement system in the country, endorsing its Income Drawdown (IDD) fund as the prospective answer for retirement income.
Supported by a remarkable 283% capital adequacy ratio, the insurer is encouraging flexibility and capital development for retirees in Kenya.
SanlamAllianz’s IDD fund capitalizes on the company’s legacy as the pioneer of annuities in the Kenyan marketplace.
It serves as a contemporary, adaptable substitute for conventional annuities for retirees desiring autonomy and longevity.
Traditional retirement plans have primarily focused on saving and accumulation during a person’s working years; nevertheless, SanlamAllianz is addressing the decumulation phase by introducing the IDD fund and overseeing a monthly pension annuity distribution of approximately KSh 150 million.
“Retirement does not equate to an absence of consistent income,” remarked Jacqueline Karasha, CEO of SanlamAllianz Life Insurance. “Your investment keeps growing with the SanlamAllianz Income Drawdown Fund while you receive a reliable income, either monthly, quarterly, or annually.” It’s adaptable, dependable, and crafted to ensure your retirement years are genuinely fulfilling.
The IDD fund functions similarly to a retirement savings account that stays invested. It enables retirees to take regular withdrawals while the leftover money grows via market investments.
She stated that the fund supports retirees in multiple ways, noting that in 2024, it achieved a net return of 15%, emphasizing that investments are kept in the SanlamAllianz Deposit Administration Fund for maximum growth.
She stated that the fund provides a minimum return of 5%, ensuring that the investment will not fall below the initial amount, which gives assurance in unstable 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.
