Start your income now
When its time to retire, you may want to turn your savings into a regular income straight away. The Lifetime Income Fund starts by investing your capital in a balanced fund that preserves your capital whilst you draw down on it. The Fund also insures your income level so regardless of what happens in the financial markets you continue to receive your fortnightly income payments, even if your original capital runs out.
How much will your income be?
The initial amount of money you invest is called your Protected Income Base. You can invest anything from a minimum of $25,000 to a maximum of $1,000,000.
Your regular, insured income payments are called your Lifetime Withdrawal Benefit. This is calculated from the size of your Protected Income Base and the age at which you begin your income payments.
I am 65 years old, I have $100,000 and want to draw an income immediately. What will my income be?
Your Lifetime Withdrawal Benefit will be $5,000 per annum after-tax (or $192 each fortnight) for the rest of your life, regardless of market fluctuations or how long you live.
Your Protected Income Base is $100,000 and your income is simply 5.00% of that with no tax to pay.
I am 75 years old, I have $175,000 and want to draw an income immediately. What will my income be?
Your Lifetime Withdrawal Benefit will be $10,500 per annum after-tax (or $403 each fortnight) for the rest of your life, regardless of market fluctuations or how long you live.
Your Protected Income Base is $175,000 and your income will be 6.00% of that with no tax to pay.
This case study gives you a more detailed example of how Lifetime can give you income immediately
What happens if your circumstances change?
You don’t know what’s going to happen, so it’s important that your financial arrangements have enough flexibility to cope with whatever life throws at you. Lifetime enables you to:
- invest additional sums before you commence income payments
- withdraw up to 20% of your investment as a lump sum. Your income payments will be re-calculated to take account of this
- withdraw your full account balance without penalty
- have your remaining balance go to your estate on your death
If you wish to find out more about the Lifetime Income Fund we can mail you a free information pack