Jacqueline Karasha, SanlamAllianz Kenya Life CEO and Principal Officer
Retirees in Kenya now have a more flexible way to access their pension savings following the launch of the Sanlam Allianz Income Drawdown Fund. The product is designed for individuals who have accumulated at least Sh4 million in retirement savings and are seeking a steady, yet adjustable income after exiting formal employment.
Speaking during the launch, Jacquiline Karasha, CEO and Principal Officer of SanlamAllianz Kenya Life, noted that unlike traditional annuities where retirees lock in their savings in exchange for a guaranteed lifetime income, the Income Drawdown Fund allows customers to withdraw up to 12 per cent of their accumulated fund annually. This flexibility enables retirees to adjust their withdrawals depending on their lifestyle and financial needs.
“Annuities which are typically recommended for those with Sh4 million and below, offer predictable and stable income but limit access to additional funds once the contract is signed. Retirees cannot change their withdrawal amounts under an annuity arrangement, making it ideal for individuals who prefer certainty and already have other income sources.” She explained
Built-In Protections and Returns
Karasha said Income Drawdown Fund stands out in a competitive market with 28 registered drawdown products.
“One key differentiator is a guaranteed minimum return of 5 per cent, aimed at cushioning retirees against market volatility and protecting their savings from being eroded during economic downturns.” she added
Sanlam Allianz Income Drawdown Fund Boosts Retirees Flexibility
In addition, the fund declared a 15 per cent return last year, with the insurer expressing confidence in delivering competitive returns going forward. This performance allows retirees to potentially grow their savings even as they draw income.
However, flexibility comes with responsibility. The company emphasizes the need for annual reviews and financial education to ensure retirees do not deplete their savings prematurely. Industry data shows that some pensioners exhaust their funds within eight years, leaving them financially vulnerable later in life.
Driving Pension Awareness and Inclusion
Beyond the drawdown product, Sanlam Allianz is also pushing for greater pension participation, particularly among informal sector workers who have traditionally been excluded from structured retirement savings.
Through initiatives such as Akiba Plus, the insurer is encouraging early and consistent saving by offering ease of contribution and improved tracking of retirement progress. “The goal is to demystify pensions and help Kenyans understand how much they need to retire comfortably.” said Karasha
With over Sh2.8 trillion currently held in Kenya’s pension industry, the focus is increasingly shifting from accumulation to post-retirement solutions.
According to the insurer, Income Drawdown Fund provides retirees with choice, flexibility, and financial security in their golden years.