When you retire, the bills keep coming in but a regular pay cheque doesn’t. An annuity can pay you guaranteed, monthly income which can keep pace with inflation, if you choose, and is tax-free if you’re over 60 and investing your super money. Also, Annuities can help you access or increase your seniors benefits like the Age Pension and the Commonwealth Seniors Health Card.

Security

Your regular income payments are guaranteed, regardless of share market movements or interest rate fluctuations.

Flexible terms and payments

With annuities you can choose your investment term. It can be as short as one year, as long as 50 years or even for your lifetime. You can also select how often you get paid – monthly, quarterly, half-yearly or annually.

Lifetime income

In the case of a lifetime annuity you can enjoy regular, dependable payments for the rest of your life.

Tax effectiveness

When an annuity is bought with money rolled over within the superannuation system by a person aged 60 or over, the regular payments are tax free.

Senior’s benefits

Annuities can help you access or increase your senior’s benefits like the Age Pension and the Commonwealth Seniors Health Card.

Inflation protection

With some annuities, you can elect to index your payments so they keep pace with inflation or at a fixed indexation rate.

Access to your money

If you would like to cancel your annuity, in most cases you will receive a return of your investment. However, you may receive back less than you invested originally and less than you would have received had you held the annuity for its agreed term. We can explain this to you in more detail.

Annuities investment terms can be as short as one year, as long as 50 years or even for your lifetime.

Fixed term annuities

Fixed term annuities have a fixed start date and end date that is typically chosen by you. The minimum term is one year and maximum term is 50 years. Your annuity payments are made for the duration of the term and stop at the end of the term.

Lifetime annuities

Lifetime annuities are designed to provide payments for the rest of your life. Payments start when the investment begins and continue for the rest of your lifetime and may, if you choose, continue for the lifetime of a second person.

Lifetime annuities can help alleviate the worry that you will outlive your retirement savings by providing payments for your lifetime. Talk to us today about how to get advice on Annuities as part of your Retirement Planning.

More information on annuities can be found at:

http://www.challenger.com.au/

and:

http://www.afr.com/p/asset/play_safe_with_retirement_u0XxTq6CdldiBl4dFPD0RK