SanlamAllianz Kenya Targets Pension Market Expansion with Income Drawdown Plan

SanlamAllianz Kenya has revealed a strategic initiative to reshape the retirement frameworkin the country,establishing its Income Drawdown (IDD) fund as the nextstepin retirement income evolution.

Supported by a top-tier 283% capital adequacy ratio, the insurer is promoting a shift towards flexibility and capital expansion for retirees inKenya.

SanlamAllianz’s IDD fund isfounded on the company’s legacy as the initial provider of annuities in the Kenyan market.

It serves as a contemporary, adaptable substitute to conventional annuities for retirees desiring longevity and autonomy. While conventional retirement plans have focused primarily on accumulation, saving during employment, SanlamAllianz is now addressing the decumulation phase with the introduction of the IDD fund while still overseeing an average monthly pension annuity disbursement of KSh 150 million.

“Retirement doesn’t imply a deficiency in a regular income stream, “remarked Jacqueline Karasha, CEO: SanlamAllianz Life Insurance. “With the SanlamAllianz Income Drawdown Fund, your savings keep increasing while you get regular income, whether monthly, quarterly, or annually.” Itisadaptable,dependable,and crafted to ensure your retirement years are genuinely fulfilling.

The IDD fund functions similarly to a pension bank account that stays invested.

It enables retirees to take regular withdrawals while the left over balance continue s to increase through market investments.

She mentioned that the fund supports retirees in multiple ways, highlighting that in 202 announced a net return of 15%, explaining that investments are managed within the SanlamAllianz Deposit Administration Fund, which guarantees competitive growth.

She alsoasserted that the fund guarantees a minimumreturn of 5%, making sure the investment value does not fall below the principal, offering reassurance during turbulent market conditions.

“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.