Lifetime Retirement Income update

Lifetime Retirement Income is an innovative financial solution that has been available in New Zealand for over a year.  We have recommended it to clients and over the last year, Lifetime have updated their offering in response to feedback from clients.  These changes provide more flexibility to the offering and make it even more attractive to clients.

Lifetime provides you with an annuity for your lifetime.  They will pay you the agreed amount until you die.  If you live longer than anticipated, you will continue to receive the income.  On the other hand, if you die before your lump sum is used up, your estate receives the unused portion back (less fees - which are clearly stated and realistic).  Once you have invested your money, if you need some back, you can make a withdrawal at any time (of course your income on the remaining funds will reduce as a result).

The income that is paid on your lump sum investment will depend on the age that you are when you make your investment.  This was originally in five year bands, but Lifetime have changed this so that there is a different income based on your actual age when you make the investment.  This is the new table of rates:

In addition, you can now make an investment of any amount from $25,000 and you can make an investment as a couple instead of as an individual.

Moneyworks already have clients receiving income from Lifetime Retirement Income as part of their retirement income and others who are planning on using this solution as a part of their retirement income solutions.  If you would like more information, please get in touch with us on contact@moneyworks.co.nz.
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