Superannuation Retirement Income Streams

Fixed Term Income Stream

Fixed Income Streams are where you invest your super money into a ‘guaranteed’ income stream that will continue to pay you an income for an agreed term, generally ranging from 1 to 20 years.

One of the benefits of these income streams is that your income is guaranteed, and you know what income you are going to receive over the period of the income stream. Furthermore, the amount of income can be indexed over time (for example, increased with inflation) for the duration of the term. Therefore, if paid over a long period the income will keep up with increases in the cost of living.

However, the earning rates used to determine the amount of income you will receive can be comparatively low. It is also generally difficult to withdraw a lump sum.