SanlamAllianz Unveils Income Drawdown Fund for Retirees

With a strong capital adequacy ratio of 283%, the insurer is promoting flexibility and capital enhancement for retirees in Kenya.

While conventional retirement schemes have mainly concentrated on saving accumulation during one's career, SanlamAllianz is now tackling the decumulation phase by launching the IDD fund, all while managing a monthly pension annuity payroll averaging KSh 150 million.

“Retirement does not mean a lack of dependable income,” said Jacqueline Karasha, CEO of SanlamAllianz Life Insurance. "With the SanlamAllianz Income Drawdown Fund, your savings continue to grow while you earn regular income, available monthly, quarterly, or yearly." It is versatile, reliable, and designed to make your retirement years truly satisfying.

She noted that the fund aids retirees in various aspects, highlighting that in 2024, it recorded a net return of 15%, with assets overseen in the SanlamAllianz Deposit Administration Fund, ensuring reliable competitive growth.

She further claimed that the fund assures a minimum return of 5%, ensuring the investment value remains above the principal, which provides comfort in volatile 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.