NAIROBI, Kenya, Feb 24 – SanlamAllianz Kenya has launched a new retirement plan allowing pensioners with at least Sh4 million in savings to withdraw a regular income while keeping the balance invested to continue earning returns.
The product, known as an income drawdown fund, enables retirees to access up to 12 percent of their savings annually, with flexibility to adjust withdrawals based on their financial needs.
SanlamAllianz Life Insurance Kenya Jacqueline Karasha said the plan targets retirees who want steady income without locking away all their savings in a fixed annuity.
“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—monthly, quarterly, or annually,” she said.
“It is flexible, reliable, and designed to make your retirement years truly rewarding.”
Unlike annuities, where retirees surrender their savings to an insurer in exchange for guaranteed lifetime payments, the drawdown option allows customers to revise how much they withdraw each year.
The fund also comes with a minimum guaranteed return of five percent to cushion savers against market volatility. Last year, the company declared a 15 percent return.
Karasha noted that retirees with Sh4 million or less may still be better suited for annuities, which provide predictable income streams.
Kenya’s pension industry holds about Sh2.8 trillion in assets, with 28 registered income drawdown providers competing to attract retirees seeking flexibility in retirement.
