a regular income stream that can be purchased with superannuation monies
a superannuation account from which a series of regular payments can be drawn upon in retirement
a superannuation investment that lets you withdraw your superannuation benefits as an income stream
a tax advantage income stream, paid from your own retirement capital through a Family or Public Superannuation Fund
a tax-effective retirement income stream created from funds in superannuation
A pension which pays a regular income. The total amount paid over the years equals the amount originally invested, plus interest.
An investment, offered by a superannuation fund, that provides a flexible, regular income that allows access to capital. (see also Allocated income stream products–the basics)
A type of retirement income product, providing flexible income payments (within certain limits) until the account balance is exhausted. The remaining account balance at any time depends on investment performance and on the level of income withdrawn.
A pension arrangement where a person has his/her own account and regularly (eg. monthly) draws down an amount from the account, within certain legislated limits. The pension continues until death or until the account is exhausted. On death, the balance in the account is usually paid to a designated beneficiary as a lump sum, used to buy a further pension for a surviving spouse or the income stream may continue as a reversionary benefit. The main differences between an allocated pension and a traditional pension are that the former offers continual access to the capital sum invested, flexibility in drawdowns, and no protection against money running out early.
is an amount paid regularly from an investment account in which the level of annual income payments falls within a range determined by government regulations. Payments are made until all capital is withdrawn or you die (in which case the balance of the investment is available to your estate or to the person nominated as your reversionary pensioner (spouse) who may continue to receive a pension until account balance falls to zero (usually around age 80 – 85 as a guide).
A type of retirement income arrangement under which an individual invests a lump sum and then draws down a regular pension to a value that takes account of expected cash flow needs and life expectancy. Income ceases when all capital has been used up.
A retirement income arrangement where a lump sum is invested, then an annual pension is drawn down. The retiree has access to the lump sum at all times, and upon their death the balance is paid to their beneficiaries. The Government fixes the maximum and minimum pension that may be taken during the year.
an investment in which you can only invest a lump sum superannuation payment and which provides you with a regular and flexible income in retirement, together with an opportunity for capital growth.
A pension purchased with a superannuation payout on retirement. The amount of pension received each year can vary at the recipient's choice but within maximum and minimum levels set by legislation. The principal is progressively drawn down each year until it runs out.
A long term arrangement which provides a retired person with a regular cash flow by paying out an investment in accordance with legislated guidelines. Payments can generally vary between fortnightly, monthly, quarterly or yearly.
An income stream purchased with an Eligible Termination Payment, which is designed to suit your circumstances.
Allocated Pensions are a form of income stream which are paid out until the account total has exhausted. These pensions are paid out from a pre-determined period and generally speaking you can withdrawal from the pension as a lump sum or a small proportion at any time.
A type of income stream paid from a super fund. The income stream can be varied each year within government-prescribed minimum and maximum limits. Your pension payments are a mixture of investment earnings and the return of your original purchase price. You can buy an allocated pension only with eligible termination payments that are unrestricted 'non- preserved'.
A specially structured investment that delivers periodic payments within limits prescribed by law, until the entire account balance is exhausted or the death of the annuitant.
An Allocated Pension is a superannuation investment account which pays regular ‘pension' payments to the investor. The investments in the superannuation fund which are used to pay the pension have the potential to grow in value depending on the underlying investment mix (e.g. shares, property, interest-bearing investments, capital guaranteed investments). However, the regular pension payments – which can be annual, quarterly or monthly – reduce the value of the account over time. The amount of each payment is flexible within certain limits depending on your age and the account balance. The investment earnings in the account accrue tax free. You pay tax only on the pension payments as you receive them, usually with the benefit of a 15% tax rebate and possibly a tax free component. Apart from the flexible pension payments, you can withdraw in cash (‘commute') any part of the remaining balance at any time.
an allocated pension provides a regular income stream and may provide a means to reduce the tax impact on the beneficiaries on monies following the payment of the death benefit sum insured.
A retirement income arrangement whereby an individual invests a lump sum and then draws down an annual pension. The pension is balanced according to the individual’s day to day needs and their life expectancy.