Retirement Life
22 May 2024

Generating an income that lasts: mission accomplished!

At Lifetime, we firmly believe all Kiwis deserve to live comfortably in retirement, with the confidence of a steady, reliable income to support their post-work lifestyle.

Our purpose is to develop and deliver innovative, effective, low-cost income solutions retirees can trust. And we do it well. Just ask our clients.

A very good year

This financial year (12 months to 31 March 2024) our Lifetime Income Fund (LIF) returned 11.6% after fees and taxes (based on the highest PIR of 28%). This was a great result, but only part of the story.

If you’re familiar with what we do, have attended a seminar or workshop, or are a current customer, you’ll have heard us talking about the trickiest puzzle in retirement income planning – specifically, how do you make your money last a lifetime when you don’t know how long that is?

We specialise in solving that puzzle so our customers can focus on enjoying their best lives in retirement.

That means we don’t measure LIF’s success by investment returns alone. The thing we’re most focused on is the stability and reliability of members’ regular retirement income payments.

LIF’s solid performance means investment returns (after tax and fees) have kept pace with income payments. In other words, our customers’ closing balances were higher than their opening balances, even after deducting their tax-paid income payments.


The feedback that drives us

We know how comforting this is to our customers because they tell us:

Calculate what you could draw in retirement.

“I’m just writing to say how much I appreciate your hard work and management of my funds. It’s amazing that I’m drawing down a meaningful income each year, but my fund value increases.  I’m very grateful for your expertise and my regular income which makes a big difference to my life.”

Thank you for what you do and congratulations on the scheme's performance. As initial investors in Lifetime we are impressed by the management of funds and returns.”


How do we do it?

In a nutshell, there are six crucial cogs in the Lifetime Income engine:

Balancing capital depletion

This means our clients’ income payments are comprised of a mix of initial capital plus investment returns, in a proportion that ensures sufficient capital remains in their account to generate further returns.


Forecast returns and probability

To ensure we have a high degree of confidence of meeting LIF’s return and volatility targets and therefore the consistency of our clients’ income payments, LIF’s asset allocation mix is actively managed daily to minimise the impact of financial market fluctuations.

Growth and income mix

We firmly believe that investing in growth assets is crucial to delivering a sustainable, consistent retirement income. Most people will be retired for between 20-30 years, which is very much a long-term investment horizon.

Mortality (age/gender based)

We keep an eagle eye on personal longevity risk. Everyone’s lifespan is different and it’s always changing. That’s why we review our customers’ projected lifespan every year on their birthday so they can remain confident their income will last a lifetime.


Lifetime income payments can be adjusted to reflect inflation.

Retirement spending patterns

People tend to spend more in the earlier in retirement when they are fit and active. Lifetime income payments can be structured to account for changing spending patterns over time.

Keep an eye out for coming articles where we’ll take a closer look at what goes into a Lifetime Income and demystify some of the complex concepts that underpin our successful retirement income solution.


Get in touch

If you’re interested in exploring whether the Lifetime Income Fund is right for you, simply request an info pack below.

Project your retirement income.

Photo of Vanessa Glennie
Written by:

Vanessa Glennie

Vanessa is Head of Communications at Lifetime Retirement Income. She’s an experienced investment writer, having spent more than a decade writing about financial markets in the global fund management industry.

Invest with Lifetime for a retirement income managed for living.

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