Liberty launches flexible returns retirement plan

Nairobi Securities Exchange-listed insurer Liberty Kenya Wednesday launched a retirement benefits solution that will offer retirees flexible investment returns.

The new plan, known as Ustaafu Income Drawdown, will cushion pensioners against risks and costs associated with self-investment. It targets the 50 to 80 years age bracket.

Under the plan, customers’ funds will be invested in either the conservative or balanced portfolios. The two portfolios are characterised by low risk and stable investment returns.

Liberty Life Assurance managing director Abel Munda said the plan is an upgrade from the traditional annuity since it comes with a benefit proposition that will allow individual retirement funds accrue investment returns while earning income for a minimum period of 10 years.

“The plan comes with an ad hoc payment of Sh300,000 or more in addition to the minimum single purchase amount of Sh2 million,” Mr Munda said.

The minimum drawdown period allowable is 10 years from the start date of the plan.