How does Lifetime Income work?
We have created an Annuity Factor. It is a Personal Factor.
We take into consideration, your gender, your age, your tax rate and what we expect future investment returns to be at any point in time.
We combine these all together and create a single number which is your Personal Annuity Factor. We then apply this to your account balance and that tells us how much income you can drawdown each year, paid fortnightly, after tax, and be confident it will last you a lifetime.
The Lifetime Annuity Factor, is all about your personal life expectancy.
Everybody is different, everybody lives a different length of life.
So when we calculate your annuity factor, every year we check in on your birthday to make sure you can always have that confidence your income will last your lifetime.
We Manage Money Differently
We’ve learned that there are significant differences in how you manage money between those people who are saving for retirement and those people who are in retirement. They have got a very different set of challenges.
We manage retirees money a little differently to people who are saving for retirement. The reason for that is we have to make sure retirees savings last.
Lifetime invests your retirement savings, then combines your retirement savings balance with your investment returns and calculates your Lifetime Annuity Factor to determine how much income can be paid each year to last your lifetime with confidence.
So we manage it in a way that doesn’t just maximise investment returns, but also ensures that the capital base you have will indeed last you your lifetime.