SanlamAllianz Kenya has declared a strategic initiative to reshape the retirement framework in the country, establishing its Income Drawdown (IDD) fund as the logical advancement of retirement earnings.
Supported by a top-tier 283% capital adequacy ratio, the insurer is advocating for flexibility and capital expansion for retirees in Kenya.
SanlamAllianz’s IDD fund is rooted in the company’s legacy as the initial supplier of annuities to the Kenyan sector.
It serves as a contemporary, adaptable option to classic annuities for retirees desiring longevity and autonomy. Traditional retirement plans have focused primarily on accumulation and saving during employment, but SanlamAllianz is now addressing the decumulation phase by introducing the IDD fund, while also managing an average monthly pension annuity payroll of KSh 150 million.
“Retirement doesn’t imply having no consistent income,” stated Jacqueline Karasha, CEO: SanlamAllianz Life Insurance. “Your savings keep growing with the SanlamAllianz Income Drawdown Fund while you receive a regular income, whether monthly, quarterly, or annually.” It’s 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 enables retirees to take out regular payments while the leftover amount keeps increasing via market investments.
She stated that the fund supports retirees in multiple ways, highlighting that in 2024, it reported a net return of 15%, emphasizing that investments are maintained within the SanlamAllianz Deposit Administration Fund for competitive growth.
She also asserted that the fund guarantees a minimum return of 5%, ensuring that the investment value won’t fall below the principal, offering reassurance in uncertain 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.
