Frequently asked questions

How does Lifetime Income work?


Lifetime invests your retirement savings, then combines your retirement savings balance with your investment returns and calculates how much income can be paid each year to last your lifetime with confidence.

Each year we reset 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.

We call this an annuity factor.

  • 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.

How does Lifetime keep your savings secure?


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

The Government-owned Public Trust is the supervisor and custodian of the Lifetime Retirement Income Fund. When you invest with Lifetime, your savings are deposited into a Public Trust bank account. The Public Trust invests your savings with the investment managers of the balanced fund (Vanguard, ANZ, and Harbour Asset Management) in the assets stated in the Product Disclosure Statement.

The 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 payments to you, paying the fees and tax 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). Lifetime reports to the FMA every month on its financial performance and management of investors’ money.


What Annual fees are charged?


1.35% per annum of your investment account balance. The Fund Management Fee is to invest and manage your capital in the Lifetime Retirement Income Fund. Your annual retirement income review is completed at no extra cost.

Can I make a partial withdrawal?


You can make a partial withdrawal at any time, but you must retain a minimum account balance of $25,000 (unless we agree otherwise). 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 happens to your investment if you pass away?


If you pass away, your account balance will be paid to your estate.


Can we invest as a couple?


You may 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.


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 tax do you 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.



What is the minimum investment size?


You can invest anywhere from a minimum of $25,000.

We can accept applications below at our discretion.


What is the minimum and maximum age you can invest and start income?


You can invest with Lifetime at any age, but only start your income payments from age 60 onwards.

Can you invest and start income later?


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


What will your investment returns be?


The Fund’s investment objective is to preserve capital to support the provision of retirement income for life, delivering a target minimum return of 4.50% per-annum (before taxes and fees) over the long term. Note returns are not guaranteed.


How much of your savings should you invest with Lifetime?


Lifetime is designed to help you bridge the income gap between your fortnightly expenses and the money you get from Super, making sure your regular income needs are covered for life.

As a result, the amount you could invest with Lifetime depends on your personal living costs in retirement. This is subjective and will depend on your personal circumstances.  

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 provide to know who they are providing services to. You can find more information here.