Income Drawdown Fund
The Trustees of the Defined Contributions (DC) Scheme established an inhouse Income Drawdown Fund in January 2020. The Fund became operational in the same month following an approval from the Retirement Benefits Authority (RBA). In the inaugural year 2020, the Income Draw Down Fund registered a return of 11.0% with a total membership of 27 and fund value of Kshs. 124,115,625.10. In 2021, the Fund registered another good performance of 12.45% with a total membership of 80 and a fund value of Kshs. 348,286,531.10 demonstrating progressive growth in the Fund.
Income drawdown is an arrangement that allows a member at retirement to draw his/her benefits into regular instalments while the balance remains invested within the Fund. With income drawdown, you will enjoy the option for receiving your retirement income as your benefits remain within the Scheme. There is also the flexibility of choosing the amount, frequency and timing of your pension income withdrawals based on your requirements.
After a period of 10 years, a member is allowed to access their benefits after which they may opt for one of the below options:
- Continue with the drawdown arrangement; or
- purchase an annuity; or
- access the remaining balance as a lumpsum
To learn more about the Income Drawdown Fund, please write to us on firstname.lastname@example.org
July 12, 2022