Boresha Ustaafu Fund Factsheet

 

The Boresha Ustaafu fund fact sheet allows you to make an informed decision by giving you all the information you need to understand how the fund works, what investments are being made and the performance of the fund over time.

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Prepare for a certain future with an income during retirement.

 

We often need to balance two key priorities during retirement – the desire to have a flexible yet controlled growth of our income and the need to ensure that we have enough funds to support us through the rest of our golden years. That’s why Liberty has developed an Income Drawdown product ideally suited to balancing these two priorities. It allows you to manage and grow your income to enjoy your retirement.

Other Details:

 

What is the Income Draw Down?

An Income Drawdown is an investment product that provides an income from your retirement savings. It lets you choose your income each year and how you want your money invested.

 

Who can apply?

The product is available to individuals retiring from a retirement fund, allowing an Income Drawdown as a retirement option. You will be the owner of the policy. The minimum entry age is 50 years, and the maximum entry age is 80 years.

 

How much can I invest?

The minimum single purchase premium amount will be Ksh. 2 million. Additional ad-hoc premiums can be made whilst the policy is in force, with a minimum amount of KSh. 300,000

 

When can I draw income?

The minimum drawdown period allowable is ten years from the day of commencement of the income drawdown plan.

After ten years, you can exercise the following options:

- The Income Drawdown arrangement can be continued (this is the default)

- The investment value can be used to purchase a life annuity

- The investment value can be converted into a cash lump sum for the member to withdraw (less any applicable taxes)

Once every year on the policy anniversary, you can opt to vary the income drawdown percentage to adjust to your personal income needs, the past performance of the underlying assets and the amount remaining in the fund (but not exceeding the maximum allowable drawdown percentage).

 

How are the funds invested?

 

• Conservative Fund: Ideal for investors seeking minimal risk who prefer to avoid significant investment risk.

• Moderate Fund: Designed for those with a medium risk appetite and a medium-term horizon, this fund balances the characteristics of both conservative and aggressive approaches.

Cash Fund: Emphasizing stable returns and capital preservation, the Cash Fund invests predominantly in low-risk, short-term investments. It's perfect for investors aiming for consistent investment returns.

 

BENEFITS OF THE BORESHA USTAAFU INCOME DRAWDOWN

• Flexible, managed income in your retirement
• Choose investment portfolios to match your underlying risk profile to best suit your personal, financial and retirement needs.
• You can make additional payments at any time, provided they are from a compulsory source. A compulsory source means the money is coming from an approved retirement funding vehicle.
• You can regularly monitor the performance of the policy, so that you know the value of your investment and can plan your regular income accordingly.
• You will have a funeral cover of KSh 100,000 payable on your demise.