SanlamAllianz Launches Income Drawdown Fund for Pensioners
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SanlamAllianz Launches Income Drawdown Fund for Pensioners
SanlamAllianz Kenya has unveiled a strategic initiative aimed at reshaping the country’s retirement landscape. The insurer is positioning its Income Drawdown (IDD) Fund as the next phase of retirement income planning.
Importantly, the move comes backed by a strong 283% capital adequacy ratio. As a result, the company says it has the financial strength to support long-term pension commitments while offering retirees greater flexibility and growth.
From Accumulation to Decumulation
For decades, retirement planning focused mainly on accumulation — saving during one’s working years. However, the real challenge begins after retirement.
SanlamAllianz now shifts attention to the decumulation phase. In other words, the company is focusing on how retirees draw income sustainably.
The IDD fund builds on SanlamAllianz’s legacy as the first annuity provider in Kenya. While the company continues to manage an average monthly pension annuity payroll of KSh 150 million, it now offers a more flexible alternative to traditional annuities.
According to Jacqueline Karasha, CEO of SanlamAllianz Life Insurance, retirement should not signal financial uncertainty.
“Retirement doesn’t mean lacking a steady flow of income,” she said. “With the SanlamAllianz Income Drawdown Fund, your savings continue to grow even as you receive regular income, whether monthly, quarterly, or annually. It is flexible, reliable, and designed to make your retirement years rewarding.”
How the Income Drawdown Fund Works
Unlike a traditional annuity, the IDD fund operates like a pension bank account that remains invested.
Retirees withdraw regular instalments. Meanwhile, the remaining balance stays invested in the market and continues to grow. Consequently, members maintain income flow while preserving growth potential.
This structure gives retirees more control over their money. At the same time, it reduces the rigidity often associated with fixed annuity products.
SanlamAllianz Launches Income Drawdown Fund for Pensioners
Key Benefits for Retirees
The fund offers several advantages designed to balance growth, protection, and flexibility.
Market-Leading Returns:
In 2024, the fund declared a net return of 15%. Investments sit within the SanlamAllianz Deposit Administration Fund, which supports competitive performance.
Capital Protection:
The fund guarantees a minimum return of 5%. Therefore, the investment value does not fall below the principal, even during volatile market conditions.
Tailored Payouts:
Members choose how often they receive payments monthly, quarterly, or annually. In addition, they may revise payout terms each year, up to 12% of the fund balance per annum, in line with RBA guidelines.
Tax Efficiency:
Under the Tax Laws Amendment Act 2024, monthly payouts and IDD benefits remain exempt from income tax. As a result, retirees retain more disposable income.
Expanding Access Through Digital Innovation
Beyond premium-tier products, SanlamAllianz is also targeting Kenya’s informal sector, which represents nearly 80% of the workforce.
To address this segment, the company introduced Akiba Plus, a mobile-first digital platform. Through this platform, users can self-onboard, consolidate old pensions, and monitor growth in real time.
Moreover, Akiba Plus simplifies pension management for individuals who previously lacked access to structured retirement solutions. By digitising the process, SanlamAllianz aims to make professional pension management accessible to every Kenyan.
A Broader Retirement Shift
Ultimately, the launch of the Income Drawdown Fund signals a broader shift in Kenya’s retirement ecosystem.
Rather than focusing solely on savings accumulation, SanlamAllianz is now emphasising sustainable income distribution. Furthermore, the insurer combines capital protection, tax efficiency, and growth potential in a single structure.
As retirement needs evolve, flexibility and control increasingly define financial security. Through the IDD fund, SanlamAllianz is betting that Kenyan retirees want both stability and opportunity not one at the expense of the other.
