Cath and Joe get $861 a fortnight
Cath (65) and Joe (68) have a joint Lifetime Retirement Income, which gives them the security of income continuity should something happen to one of them.
From an initial retirement savings lump sum of $400,000, Cath and Joe receive $861 a fortnight after fees and tax (17.5%).
They have planned to spend more in the early years of their retirement, so once Cath turns 85 they’ll receive $603 a fortnight. This is projected to last until Cath reaches age 95.
Cath and Joe could receive $621,375 over 30 years.
See Cath and Joe's Lifetime Income Projection: Click to View
Want to see what your income could look like: Click to design an income today
Meet Bernard and Lynne: Hear about their worry-free retirement!
Learn More about Lifetime Retirement Income: Request an information pack
How does a joint Lifetime Retirement Income work?
Lifetime Retirement Income differs from a KiwiSaver in that it allows you to hold a joint account with your partner (defined as someone with whom you’re in a de facto partnership, civil union, marriage, or a relationship determined by Lifetime to be similar in nature to these).
Joint accounts have several benefits, primarily continuity of income and the peace of mind that provides.
With a joint account, when one partner passes away the surviving partner will continue to receive their regular, tax-paid income payments.
They do not have to wait for probate to clear, their income payments will continue to arrive every fortnight as they did before, saving a lot of additional stress during an already difficult time.
You do not pay more for a joint account – it has the same fees as an individual account.
The Annuity Factor for joint investors is based on the partner with the longest life expectancy. If each partner has a different Prescribed Investor Rate (tax rate for investment), we are required to apply the higher rate.