We now have access to an exciting new product called the Lifetime Income Fund.
For an initial capital outlay you can buy an Income for Life. The amount of income you will receive depends on your age when you decide you want withdrawals to start.
You can elect to receive your income fortnightly or monthly.
The minimum investment is $25,000.
You can start drawing the income at age 60 at which the benefit rate is 4.5%. The benefit rate increases by 0.10% for each year of age at which you start drawing income. Note that the benefit rate is fixed for your life, it does not change once you start receiving income.
In the current environment you may think those numbers sound too good to be true. Perhaps if you understand how it works you'll realise how it can be achieved. In the video below Ralph Stewart offers an insight into the basic concepts of the Lifetime Income Fund.
Tags: Annuities Retirement
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