Five reasons to consider a lifetime annuity
Looking for a secure and guaranteed investment for your retirement?
Here are five reasons why you may want to consider a lifetime annuity.
1. Complement other investments
Together with the Age Pension (if you’re eligible), a lifetime annuity provides a foundation that you can depend upon to cover your basic living costs – including groceries, bills and clothing.
Lifetime annuities complement other retirement investments and sources of income, such as account-based pensions and the Age Pension. They provide a secure lifetime income which can be used as the foundation of your retirement plan.
2. Flexibility to withdraw if your circumstances change
Enjoy the flexibility and freedom of knowing you can access cash if you need it. While lifetime annuities are designed to be held for life, there are withdrawal periods where you may access a lump sum if your circumstances change.
3. Spend confidently in retirement
Just like when you were earning a salary and receiving a regular pay cheque, income from an annuity provides a known regular amount, making it easy to budget your spending in retirement.
This means you can maintain your lifestyle with confidence that your savings will last the distance. And if you choose a reversionary, regular payments will continue to your spouse or partner you pass away.
4. Make your money last a lifetime
Lifetime annuities give you an additional layer of protection in retirement by providing guaranteed income payments. They act as a safety net ensuring that you will receive income for life, regardless of how long you live or how investment markets perform.
5. Protect against market risks
Unlike other types of investments, the income you receive from a lifetime annuity is not affected by share market or interest rate movements. This means the dollar value of your payments will stay the same, no matter how the market is performing.
Payments can also be linked to yearly changes in inflation, allowing you to continue to afford tomorrow what you can today.
Speak with an OBT expert
Everyone’s financial situation is different – so it’s a good idea to seek professional advice.
Your OBT financial adviser can weigh up your retirement goals and needs, and help you decide whether a lifetime annuity is the right investment option for your retirement.