SanlamAllianz Kenya has revealed a strategic initiative to reshape the retirement framework in the country, establishing its Income Drawdown (IDD) fund as the logical advancement of retirement income.
Supported by a leading 283% capital adequacy ratio, the insurer is advocating for flexibility and capital growth for retirees in Kenya.
SanlamAllianz’s IDD fund is rooted in the company’s legacy as the pioneer of annuities in the Kenyan market.
It serves as a contemporary, adaptable substitute for conventional annuities for retirees desiring longevity and autonomy. Although traditional retirement plans have focused primarily on accumulation through saving during employment, SanlamAllianz is now addressing the decumulation stage with the introduction of the IDD fund while still overseeing an average monthly pension annuity payroll of KSh 150 million.
“Retirement doesn’t imply an absence of reliable income,” stated Jacqueline Karasha, CEO: SanlamAllianz Life Insurance. “Through the SanlamAllianz Income Drawdown Fund, your savings keep increasing while you receive regular income, whether monthly, quarterly, or annually.” It is adaptable, dependable, and created to ensure your retirement years are genuinely fulfilling.
The IDD fund functions similarly to a pension savings account that stays invested. It permits retirees to take out consistent payments while the outstanding amount keeps increasing through investment in the market.
She mentioned that the fund supports retirees in multiple ways, emphasizing that in 2024, it reported a net return of 15%, with investments managed within the SanlamAllianz Deposit Administration Fund, providing assured competitive growth.
She also asserted that the fund guarantees a minimum return of 5%, ensuring that the investment value will not fall below the principal, which offers reassurance 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.
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