SanlamAllianz Kenya has launched a new Income Drawdown (IDD) fund, aiming to transform retirement for Kenyans by offering a more flexible and growth-focused alternative to traditional annuities. The move comes as the insurer continues to solidify its position as a leading provider of retirement solutions, backed by a strong capital base with a 283% capital adequacy ratio.
The IDD fund is designed to help retirees manage their savings after retirement, allowing them to receive regular income while keeping their remaining funds invested to grow over time. Unlike conventional annuities, which focus mostly on accumulating wealth during one’s working years, the fund addresses the “decumulation” phase helping retirees draw from their savings while maintaining financial growth.
“Retirement shouldn’t mean losing a steady income,” said Jacqueline Karasha, CEO of SanlamAllianz Life Insurance. “Our Income Drawdown Fund lets your savings continue to grow even as you receive regular payouts whether monthly, quarterly, or annually. It’s flexible, reliable, and designed to make retirement truly rewarding.”
The fund functions like a pension bank account, letting retirees withdraw instalments while the rest of the money remains invested. Key benefits include:
- Strong Returns: In 2024, the fund delivered a net return of 15%, with investments held within the SanlamAllianz Deposit Administration Fund.
- Capital Protection: A minimum guaranteed return of 5% ensures retirees’ principal is safeguarded even in volatile markets.
- Flexible Payouts: Members can select payout frequency and adjust their withdrawals annually, up to 12% of the fund balance per year, as per Retirement Benefits Authority (RBA) guidelines.
- Tax Efficiency: Monthly payouts and benefits from the IDD fund are exempt from income tax under the Tax Laws Amendment Act 2024, increasing retirees’ disposable income.
SanlamAllianz is also expanding its reach to informal sector workers, who make up about 80% of Kenyans. Through its mobile-first platform, Akiba Plus, users can self-onboard, consolidate old pensions, and track their savings in real-time making professional pension management accessible to more people.
With the IDD fund, SanlamAllianz is offering retirees more control over their financial future while continuing its long-standing legacy as a pioneer of annuity solutions in Kenya.
