SanlamAllianz Kenya has launched a retirement plan designed for pensioners with at least Sh4 million in savings.
The product, known as an Income Drawdown Fund (IDD), allows retirees to withdraw up to 12% of their savings annually while keeping the balance invested to continue earning returns.
Unlike traditional annuities, where retirees surrender their savings for guaranteed lifetime payments, the drawdown option offers flexibility. Retirees can adjust withdrawals each year based on their financial needs, ensuring both income and growth.
“Retirement doesn’t mean lacking a steady flow of income. With the SanlamAllianz Income Drawdown Fund, your savings continue to grow even as you receive regular income—monthly, quarterly, or annually,” said Jacqueline Karasha, CEO of SanlamAllianz Life Insurance Kenya.
Key Features of the Income Drawdown Fund
The IDD fund operates like a pension bank account that remains invested, empowering retirees in several ways:
- Market-Leading Returns: In 2024, the fund declared a 15% net return, with investments held in the SanlamAllianz Deposit Administration Fund.
- Capital Protection: A minimum guaranteed return of 5% shields savers from market volatility.
- Tailored Payouts: Retirees can choose monthly, quarterly, or annual payments, revising terms each year within RBA’s 12% withdrawal limit.
- Tax Efficiency: Under the Tax Laws Amendment Act 2024, payouts from the IDD fund are exempt from income tax, maximizing retirees’ disposable income.
Who Should Consider It?
Karasha noted that retirees with less than Sh4 million may still find annuities more suitable, as they provide predictable income streams. For those with larger savings, however, the IDD fund offers control, growth, and flexibility.
Transforming Kenya’s Retirement Landscape
Kenya’s pension industry now holds Sh2.8 trillion in assets, with 28 registered income drawdown providers competing for retirees seeking flexible solutions. SanlamAllianz is positioning its IDD fund as the “natural evolution of retirement income,” backed by a 283% capital adequacy ratio.
The company continues to manage an average monthly pension annuity payroll of Sh150 million, while expanding into modern retirement solutions that address both accumulation and decumulation phases.
Beyond High-Tier Products: Akiba Plus for Informal Sector
Recognizing that 80% of Kenyans work in the informal sector, SanlamAllianz has also introduced Akiba Plus, a mobile-first digital platform. The app allows users to self-onboard, consolidate old pensions, and track growth in real time, making professional pension management accessible to every Kenyan.
SanlamAllianz’s Income Drawdown Fund offers retirees a flexible, growth-oriented alternative to annuities, combining steady income with continued investment returns. For workers still planning their retirement, build savings early, explore flexible products, and take advantage of tax-efficient options.
“It is flexible, reliable, and designed to make your retirement years truly rewarding,” Karasha emphasized.
