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Single Premium Immediate Annuity (SPIA)

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.

Contact us on This email address is being protected from spambots. You need JavaScript enabled to view it. for more information on Jubilee Single Premium Immediate Annuity (SPIA) .

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