Guaranteed regular income payable for life
Provide your clients with guaranteed regular income payments for life to help them meet their specific goals.
Your clients can choose from the following lifetime income options:
- Fixed payments, so you and your clients don’t need to worry about the performance of investment markets or movements in the cash rate.
- To help protect against inflation risk, payments can be fully or partially indexed to CPI.
- Alternatively, payments can also be linked to the RBA cash rate.
Payment summary
Liquid Lifetime (CPI, Partial CPI, Nominal and RBA cash-linked payments) choices pay a regular income for life in return for a lump sum investment.
Your clients will received guaranteed regular payments for the rest of their life (and their spouse’s life if they choose) no matter how long they live or how investment markets perform.
Clients can choose:
- Full CPI indexation - payments are indexed annually in-line with changes in CPI.
- Partial CPI indexation - payments are indexed annually in line with any increase in the CPI that is greater than 2%, for example if the change in CPI is 3% payments will increase by 1%. If the change in CPI is negative, payments will reduce.
- RBA cash rate linked payments. Payments will change whenever there is a change in the RBA cash rate.
- No indexation - fixed payments that never change.
Clients can cancel the investment at any time during their life expectancy (rounded down to a whole year). The maximum withdrawal value starts at 100% of the amount invested and steadily reduces to nil.
For more information about this option, read the PDS.