Choose this option if your client wants income certainty, but they do not want payments to start immediately.
Your client will receive CPI indexed payments for life that commence at a future time chosen by them. Alternatively they can ask to have the deferred payments fixed (so that they never change), partially linked to CPI, or linked to changes in the RBA cash rate (so that they move up and down whenever the cash rate changes).
- Your client can only use their super to invest.
- Your client can choose when monthly payments start.
- Your client receives higher starting payments than if they choose to start payments immediately.
- Once payments commence, they are payable for life (and their spouse’s life if they choose).
- Deferred payments keep pace with inflation (CPI indexed payments) – even in the deferral period.
- Payments are guaranteed regardless of how investment markets perform.
- Monthly payments are tax-free once they commence.
- Up to 100% of your client's investment is repaid to their nominated beneficiaries or estate if they die within the withdrawal period*.
- It has a withdrawal value for a period based on your client's life expectancy – just in case their circumstances change and they no longer require lifetime income*.
- A potential boost to your clients' Age Pension entitlements under Age Pension rules.
* You can ask us to change these features in return for different starting payments. But the choice is totally yours.
For more information about this option, read the PDS.