Guaranteed Income for life with account based flexibility
The Macquarie Lifetime Income Guarantee Policy provides you with a flexible, low cost investment which guarantees you will receive at least a minimum level of income for life without locking away your superannuation savings.*
|Guaranteed income for life||
Attractive guaranteed income rate for life
Bonus rate ensures high level of early income
|Payments from the Policy are exempt from income tax|
|Maintain access to your savings||
Strong market performance locked in each Investment Anniversary
Selection of Investment Funds tailored for retirees
Remaining Investment Account goes to estate on death of investor
Estate Protection Option available to help protect the amount passed to your estate on death
|Simple and flexible solution||
Income is paid directly into your nominated bank account each month
Investor chooses the level of income drawn from funds
Ability to change your asset allocations during life of product
Make withdrawals at any time
Flexibility to stop Guarantee at any time
Retirement should be a time to enjoy what you have achieved over your lifetime, not a time to worry if your savings will last. With people living longer, planning for retirement has become increasingly challenging.
With a 50% chance your pension will need to last until age 93^, you may need market linked returns but you may be concerned about market falls.
Macquarie Lifetime Income Guarantee may be suitable for SMSF retirees who:
The diagrams illustrate some of the key features of the Policy assuming you are 65 years old and invested $400,000 in the Policy;
Your initial investment establishes your Investment Account balance. Like any account based pension the balance changes over time based on the performance of the Investment funds selected and withdrawals made. In Scenario 1, where your Investment funds have performed well you would still have funds remaining when you are 100 years old. In Scenario 2, investment returns are poor and you would run out of savings at age 85, however you are still guaranteed to be paid income for life.
The Guarantee base starts as the value of the Investment Account balance (net of any upfront withdrawals). Each year it “locks in” strong investment market performance if the Investment Account balance is greater than the prevailing Guarantee base. In both scenarios the Guarantee Base ratchets up while the Investment Account balance is growing, but doesn’t fall when the Investment Account balance starts to decline.
Income Guaranteed Lifetime Income = Income rate x Guarantee base
You are guaranteed to receive the Guaranteed Lifetime Income for the rest of your life. The level of Guaranteed Lifetime Income that will be payable each year will depend on your Guarantee base and your Income rate at that time.
Monthly income payments are initially drawn from the Investment Account until it has been exhausted at which point the Guarantee will pay you the Guaranteed Lifetime Income.
Income rate = base rate + lifestyle bonus rate
Assuming you are 65 years old when you invest in the Policy, your Income Rate starts at 6.0% - this comprises a Base Rate of 4.0% p.a. which is guaranteed for life, and a 2.0% Lifestyle Bonus Rate for at least the first 5 years.
Both scenarios show the Base Rate remaining constant, and Scenario 1 shows that the Lifestyle Bonus Rate allows you to draw a higher income for longer if your Investment Account performs well.
You retain access to your Investment account funds at all times. You may make additional withdrawals at any time if required. When you pass away, the remainder of your Investment Account passes to your estate.
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An investment in the Policy has a number of key risks including:
Please refer to the PDS for a full description of the risks. All investments involve a degree of risk. Please ensure you consider all the risks of investment in the Policy set out in the PDS carefully and seek financial, legal and taxation advice before making a any decision about investing in the Policy.
Macquarie Life Limited ABN 56 003 963 773 (Macquarie Life) would like to update or clarify certain information contained in the PDS for the Macquarie Lifetime Income Guarantee Policy (Policy). The information contained in this update is not materially adverse information. Investors should consider the PDS and all updates available on this website before deciding whether to invest in the Policy.
Premiums will be deducted annually in advance. Premiums will be deducted from your Account Balance on or around your Investment Anniversary, with the first premium deducted from your Account Balance on or around the Commencement Date of your Policy.
The 0.25% Investment Management Fee Rebate will apply to your Investment Account over the amount in excess of $250,000.