Retirement is often seen as the stage where income slows down, but that is the perception SanlamAllianz Kenya wants to change. The insurer has introduced a new Income Drawdown (IDD) fund, a product designed to help retirees continue earning from their savings while still receiving regular payments.
The company says the move is part of a wider plan to reshape how Kenyans think about retirement, shifting focus from simply saving during working years to managing money more actively after retirement.
Unlike traditional annuities, where payouts are fixed, the new fund allows pensioners to withdraw money in instalments while the remaining balance stays invested and continues to grow. Retirees can choose how often they want to receive payments monthly, quarterly, or yearly depending on their needs.
According to Jacqueline Karasha, CEO of SanlamAllianz Life Insurance, retirement should not mean financial uncertainty.
“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. It is flexible, reliable, and designed to make your retirement years truly rewarding,” she said.
The fund works much like a pension savings account that remains active even after retirement. Members withdraw what they need while the rest is invested through the company’s Deposit Administration Fund.
In 2024, the fund posted a net return of 15 per cent. It also comes with a minimum guaranteed return of 5 per cent, meaning retirees are protected from losing their original investment even when markets fluctuate.
Members can adjust how much they withdraw every year, up to 12 per cent of their total savings, in line with guidelines from the Retirement Benefits Authority (RBA). Another key attraction is tax relief. Under the Tax Laws Amendment Act 2024, payouts from the fund are exempt from income tax, allowing retirees to keep more of their money.
Beyond formal sector workers, the insurer is also targeting Kenyans in the informal economy, who make up about 80 per cent of the workforce. Through its Akiba Plus mobile platform, users can register, combine old pension accounts, and monitor their savings directly from their phones.
The company currently manages an average monthly pension annuity payroll of about KSh150 million, reflecting its long presence in Kenya’s retirement market.
With the new product, SanlamAllianz is betting that more retirees will choose flexible income options that give them both stability and growth at a time when many are living longer and need their savings to last.
Read Also: SanlamAllianz Kenya Rebrands to Lead Market and Drive Client Excellence
