Frequently Asked Questions

How does Lifetime Income work?


Lifetime combine investment strategy with longevity management to support an income for life.

To do this we have three things:

  • A Fund with an investment strategy designed for people who want to draw a retirement income.
  • Income Projector tool that calculates a unique Annuity Factor combined with lifestyle choices to give an income designed to last for life.
  • A facility to pay 2-weekly or 4-weekly, the same day as NZ Super.

When calculating your retirement income, we couple your personal Lifestyle choices with your Personal Annuity Factor (your age, gender, PIR and expected returns) to give you a deeply personal income projection.

Then once a year, on your birthday, we actively review your income level to make sure you remain on track to drawdown the best possible level of income that is most likely to last your lifetime.

What is the Annuity Factor?


The Annuity Factor is your unique combination of:

  • Age
  • Gender
  • Investment returns
  • Tax rate
  • Savings balance

We use the annuity factor to calculate your personal annual income paid fortnightly, after tax and fees. We recalculate the annuity factor every year on your birthday or more frequently if there is a major market event to consider.

Can we invest as a couple?


Yes! You can invest as an individual, or jointly with a partner. Joint investors must be in a relationship (i.e. de facto, civil union, marriage or a relationship determined by Lifetime to be similar in nature to those relationships). The Annuity Factor for joint investors will be based on the person with the longest life expectancy however the highest PIR will be used, regardless of which investor has the higher rate.

What makes Lifetime right for me?


Lifetime’s Retirement Income Fund Here at Lifetime, we focus on turning your savings into an income designed to last your life. Our Income Fund helps you bridge the gap between your NZ Superannuation payments and your ongoing living costs.

What happens to my investment if I pass away?


If you pass away, your regular income payments will stop and the account balance will be paid to your estate if it is an individual investment, If it is a joint investment, the regular income payments will continue in the surviving spouse/investor's name.

How does Lifetime keep my savings secure?


The Fund’s investment objective is to preserve capital to support providing retirement income for life.

Public Trust is the Government-owned organisation who is the supervisor and the custodian of the Lifetime Retirement Income Fund (Fund).

When you invest with Lifetime, your savings are deposited into a Public Trust bank account. Public Trust invests your savings in the assets stated in the Product Disclosure Statement.

Public Trust supervises the administration of your capital at all times. Lifetime can only withdraw capital from your investment account in the event of: making income payments to you, paying the fees and taxes on your investment, or if you instruct Lifetime to withdraw all or part of your investment.

As a fund manager, Lifetime is monitored by the Financial Markets Authority (FMA).

Can I make a partial or full withdrawal?


You can make a partial or full withdrawal at any time.

Lifetime charge no withdrawal penalties and make it a simple and quick process.

Because we know that in retirement unforeseen emergencies happen, whether it be medical, home or car-related and we won’t ask questions; it is your business.

There is no limit on the number of partial withdrawals you can make from the Fund. If you choose to make a partial withdrawal this will trigger an Interim Retirement Income Review.

What Annual fees are charged?


A 1.35% per annum Fund Management Fee is charged on your investment account balance. This fee covers the costs to invest and manage your capital in the Lifetime Retirement Income Fund. Your annual retirement income review is completed at no extra.

What tax would I pay?


Lifetime pays tax on your behalf at your normal PIR tax rate. This means your Retirement Income is quoted as a net amount and paid to you after tax. 

You can work out your personal PIR tax rate here.

Tax is only paid on your investment returns from the Balanced Fund. You do not pay tax on any capital drawdown.

Can I invest now, and draw an income down later?


Yes. You can invest in the Fund today and commence regular tax-paid Retirement Income payments in the future.

What is the minimum investment size?


You can invest anywhere from a minimum of $25,000, as an initial investment, and $5,000 as part of ongoing investments to an existing account.

We can accept applications below these amounts at our discretion.

What is the minimum and maximum age I can invest and start to draw an income?


You can invest with Lifetime at any age, but only start your income payments from age 65 onwards.

What will my investment returns be?


The Fund’s investment objective is to preserve capital to support the provision of retirement income for life, delivering a target return of 5.50% per-annum (before taxes and fees) over the long term. Note returns are not guaranteed.

Why am I being asked to provide proof of identification?


The New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) requires a service provider to know who they are providing services to. You can find more information here.