Superannuation


Superannuation Retirement Income Streams

Lifetime Income Streams

There are many features that can be incorporated into a lifetime pension that may make it more appealing to your specific needs.

For example, you can have a guaranteed payment period which ensures that in the event you die within a certain time period after commencement of the income stream, say 20 years, payment will continue to be made to your beneficiaries until the end of that period.

Another popular feature is to nominate a reversionary pensioner. This allows the pension to continue on your death for the lifetime of the second nominated pensioner.

Previously, some people may have chosen to commence a more restrictive form of Lifetime Income Streams (known as ‘complying’ income streams), which had certain Centrelink and taxation advantages under previous laws. These are generally no longer available to new investors as the rules and concessions have changed.

Please note: From 1 July 2019, new means test rules have been established for those eligible to receive a government aged pension to encourage the development and take-up of lifetime retirement income products (e.g. certain annuity products) that can help retirees manage the risk of outliving their savings

  • the income test will assess 60% of all pension income payments received
  • the assets test will assess 60% of the nominal purchase price of the annuity until the person reaches the life expectancy of a 65-year-old male (currently age 84) – or a minimum of five years – and then 30% of the purchase price for the rest of the person’s life

Grandfathering applies to lifetime income streams purchased before 1 July 2019. This means that these income streams will continue to be assessed under the rules that existed prior to 1 July 2019.