What financial advisers have had to say about the benefits of Lifetime Pension
Launched in March 2021, Lifetime Pension is an industry-first retirement product offering tax-free, fortnightly payments that never run out. Learn more here.
It was created to address the issue that many retirees were only drawing down the minimum amount from their account-based pensions for fear of their money running out1,2. In doing so, retirees can tend to leave substantial balances when they pass away, sometimes as much as 100% of their starting balance. With Lifetime Pension your clients can have the peace of mind to enjoy their retirement from day one, rather than living a mediocre lifestyle to conserve their capital for fear of running out in the longer term.
QSuper created Lifetime Pension, which is designed to work alongside a traditional account-based income stream and, where eligible, the Age Pension, as an additional source of tax-free income that helps to address longevity risk for retirees and restore confidence to spend in retirement.
Apart from offering an income for life, other features of Lifetime Pension include spouse protection, money-back protection3 and a six-month cooling off period.
Already, Lifetime Pension has gained considerable interest from financial advisers and QSuper members. It also won Chant West’s 2021 Innovation award at the Chant West Super Fund Awards4 announced in May.
Growing appeal
Since Lifetime Pension launched, over 3000 QSuper members and 200 financial advisers have watched QSuper’s Retirement Income seminars that feature Lifetime Pension.
Over 200 retirees now hold Lifetime Pension and are receiving income from QSuper. Of these, the average purchase price has been over $200,000, by people with an average age of 70, and on average allocating 50% of their super to the new product, and the remainder allocated to an account-based pension.
Retirement calculators
To help consider whether Lifetime Pension might be suitable for your clients, you can access QSuper’s retirement planning calculator tools.
Designed for people approaching or already in retirement, the calculators can provide a potential view of a user’s retirement income, including the Age Pension if they are eligible.
They can also explore how a combination of different products may work for your client over the course of their retirement.
With QSuper’s Retirement Calculator you can view an estimate of your client’s potential income levels including their account-based pension, Lifetime Pension and potential Age Pension entitlements. The projected figures aren’t guaranteed. They are provided as an illustration only and may vary from actual results. They are based on a set of assumptions and eligibility criteria being met. Refer to the QSuper website for more information.
Find out more about QSuper’s Lifetime Pension
Visit the Lifetime Pension online hub for financial advisers for product features, eligibility requirements and other resources including Adviser guide, calculators, FAQs and the QSuper Product Disclosure Statement for Income Account and Lifetime Pension
[Footnote]
1Institute of Actuaries of Australia. 2019. “Spend your age, and a little more, for a happy retirement”. November 2019
2National Seniors Australia. 2020. “Retirement income worry: Who worries and why?”. January 2020.
3Money-back protection may be subject to legislative maximums and adjustments for negative returns. Further details are available in the QSuper Product Disclosure Statement for Income Account and Lifetime Pension (pdf).
4Awarded 26 May 2021. For further information about the methodology used by Chant West, see www.chantwest.com.au. This award is solely statement of opinion and does not represent a recommendation to purchase, hold, or sell any securities, or make any other investment decisions. Ratings and awards are subject to change and are only one factor that you should consider when deciding how to invest your super. Past performance may not be a reliable indicator of future performance.
[Disclaimer]
The opinions expressed and those providing comments are theirs alone and may not necessarily reflect the opinions of the QSuper Board. You should seek advice for your circumstances.
This information and QSuper products are issued by the QSuper Board (ABN 32 125 059 006, AFSL 489650) as trustee for QSuper (ABN 60 905 115 063) for general purposes only. You should therefore consider the appropriateness of this information in light of your own objectives, financial situation, or needs before you make any decision. Consider whether the product is right for you by reading the product disclosure statement (PDS) available from QSuper website or by calling us on 1300 360 750 to request a copy. © QSuper Board
You know what? There used to be very good lifetime income products out there. They were called annuities. No return of capital ever, only income for life. They were dead in the water after 2007 when Centrelink started including the purchase price in the assets test. Don’t tell me this is a new product. What goes around comes back.