Start your income now

When it’s time to retire, you may want to turn your nest egg into a regular income straight away.

Your savings are invested in a balanced fund that's designed to preserve your capital while you draw down on it. At the same time, your income is insured for life.

This means that regardless of what happens to interest rates or financial markets, you receive a regular payment into your bank account every fortnight.

Your income payments are insured and will continue for the rest of your life, even if you  draw down your original investment.

I don't worry as much anymore. I know I'll always have enough.

- Jane, Kapiti

What 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 is called your Lifetime Withdrawal Benefit. This is a percentage of your Protected Income Base.

You can start receiving your Lifetime Withdrawal Benefit at any time after you turn 60 and your Lifetime Withdrawal Benefit rate is based on your age when you first start receiving income.

For example, if you started your Lifetime Withdrawal Benefit at age 65, your net income rate would be 5.00% per annum after fees and tax. However, if you started your Lifetime Withdrawal Benefit at age 70, your net income rate would be 5.50% per annum after fees and tax.

To see how much income you could get, try our Retirement Income Calculator.

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Between $25,000 and $1,000,000
Between 60 and 90
Between 60 and 90

You're 65 and want to invest $100,000. What will your income be?

At 65, your Lifetime Withdrawal Benefit rate will be 5.00% per annum after fees and taxes. Your Protected Income Base will be equal to your initial investment of $100,000. This will give you an insured income of $5,000 per annum paid into your bank account at a rate of $192 every fortnight for life.

If you pass away, all remaining capital will go to your estate.

 

You're 75 and your partner is 77. You want to invest $150,000. What will your income be?

Because you are making a joint investment, your Lifetime Withdrawal Benefit rate will be based on your age, as you are the younger partner. At 75, your Lifetime Withdrawal Benefit rate will be 6.00% per annum after fees and tax. Your Protected Income Base will be equal to your initial investment of $150,000. This will give you an insured income $9,000 per annum paid into your bank account at a rate of $346 every fortnight for life.

If either you or your partner pass away, the full Lifetime Withdrawal Benefit will be transferred to the surviving partner for the rest of their life. Should you both pass away, all remaining capital will go to your estate.

 

What happens if your circumstances change?

No one knows what’s going to happen in the future, so it’s important that your finances have the flexibility to cope with whatever life throws at you. Lifetime allows you to:

  • Withdraw your full account balance without penalty.
  • Withdraw up to 20% of your investment as a lump sum without penalty. Your income will be recalculated to take account of this.
  • Have your remaining balance go to your estate if you pass away.
  • Invest additional sums to top up your income.

 

How Dave & Sharon got an income for life

Find out how Dave & Sharon invested with Lifetime to get a reliable income for life.