26 April 2016
Lifetime Income products are now available in New Zealand
Lifetime Income products are now available in New Zealand, signalling a significant development for the retirement sector.
The fresh approach taken by Retirement Income Group overcomes the historical problems associated with old annuities offered in New Zealand, which suffered from inflexibility, poor tax treatment, low returns and high costs.
The Lifetime Income Fund converts retirement savings into a regular fortnightly income, which remains at the same level regardless of market movements and will last the life of the investor.
The investor can remain with the fund as long as they wish or they can redeem their investment, less withdrawals, at any time.
Chairperson Diana Crossan said,
“Over the next 15 years, 500,000 KiwiSavers will reach 65 and most will live for another 25 years, the combined value of their savings is estimated be as much as $40b.
New Zealanders face important financial decisions about their retirement savings to ensure they won’t outlive the savings they worked hard to accumulate.
Modern retirement income options that can be relied upon, and at the same time are flexible enough to change as retirement needs change, are a key step to achieving a quality retirement.”
Managing Director, Ralph Stewart said,
“We’ve taken a proven international concept and adapted it to meet the needs of New Zealand’s retirement community ..."