Our Lifetime Pension isn't an annuity. It's an innovative new retirement product that's the first of its kind in Australia.
There are a few key differences between our Lifetime Pension and a traditional annuity:
- The Lifetime Pension generally provides a higher income as it's linked to the market. An annuity is usually invested conservatively and pays a lower, fixed income for life.
- The rate of income isn't guaranteed, and the payment amounts can go up and down each year, whereas an annuity often gives a fixed income amount.
- Lifetime Pension is designed to be a lower cost product by converting all capital to income, except for fees and costs.
- Lifetime Pension payments are for the rest of your life. An annuity typically has payments for your predicted life expectancy, with an added cost if you want payments until you die.
- You use your super to purchase a Lifetime Pension, not your personal savings like an annuity offered by a life insurance company.
There are also a few similarities between Lifetime Pension and a traditional annuity:
- Both products provide tax-free income after you turn 60 years old.
- Lifetime Pension provides a death benefit, which some annuities also do. If you're diagnosed with a terminal illness or die before receiving payments equal to your purchase price, we return the difference to your estate.
- Lifetime Pension provides an income for as long as you live (and your spouse's lifetime if you have the spouse protection option). Some annuities offer an income for the same amount of time.
Try our Lifetime Pension calculator to see how much income you could get in your first year or attend one of our member seminars.