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Single Premium Immediate Annuity (SPIA)

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The Jubilee Single Premium Immediate Annuity is a regular payment made to you by us for the rest of your life, in return for your pension fund (Accumulated fund) and is characterized by the following features:

  • Accumulated fund is applied as a premium to purchase the SPIA (provides for stream of income for life)
  • Takes care of the longevity risk by guaranteed stream of income for life
  • Financial security and independence after retirement
  • Takes over the investment risk (no worries on market movements)
  • Tailor made to suit each individual (frequency, guaranteed period, single/joint, level or escalating and with or without death cover).
  • Tax free allowance on the pension paid, and
  • Pension paid to retirees over age 65 years is not subject to tax.

Why should I choose to purchase SPIA instead of investing in a Bank?

SPIA is only available from Insurance Companies. The tax favoured treatment on the income stream allows you to receive a greater benefit.

What is the tax treatment of my income payments?

In any one year, the Income Tax Act ( current 2009) allows an annuity payment up to Kshs.180,000 tax free per annum. No tax is payable for pensioners aged 65 years and above.

What payment options do I have?

You can customize the annuity payments to best fit your lifestyle and income needs. Some of the options include:

  • Frequency of payment. You can choose the frequency. The payments can be made monthly, quarterly, half-yearly or once a year, payable in the manner of your choice.
  • Providing for your spouse (Joint Life annuity/pension). You can also arrange for the annuity to be paid to your spouse on your death.
  • A guaranteed payment period. You can arrange for the annuity to be paid for a guaranteed period determined by you.
  • Level or Escalating.You can arrange to receive a fixed annuity amount each year or an increasing amount.

What is an annuity?

An annuity/pension is the after-retirement income you receive and is a series of periodic payments payable throughout your life. The accumulated fund at retirement is used to purchase the annuity/pension. Details on the various options available and the type of annuity/pension options can be made available on request.

 

 

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