Guaranteed Income Account

In exchange for an initial capital investment (minimum $20,000), a Fixed Term Guaranteed Income Account provides regular payments for a fixed term that you select.

The initial amount of your regular payments is determined at the time you open your Fixed Term Guaranteed Income Account, and will depend on the initial capital investment, the account options you choose and prevailing interest rates. The dollar value of your regular payments can change over time if you choose an indexation option. 

A legalsuper Fixed Term Guaranteed Income Account can be tailored to give you a dependable income for your chosen term.

You choose your payment options such as:

• Term;
• Payment frequency;
• How your capital is to be returned.

Then you start to receive your regular payments for your chosen term (1-40 years).

You have the flexibility to choose investment terms from 1 to 40 years. Your regular payments will last for the entire investment term you choose unless you choose to withdraw your money early. You have the option to have all your capital repaid to you at the end of your selected investment term, or you can choose to have some or all of your capital repaid to you as part of your regular payments throughout your chosen investment term.

The legalsuper Fixed Term Guaranteed Income Account can provide you with the security of knowing you will receive regular payments for your chosen investment term, regardless of how investment markets perform. If your chosen investment term is 2 years or more and you choose to have your capital returned to you as part of your regular payments throughout the term, then you can choose to have your payments indexed annually. The indexation is aligned with changes in the Consumer Price Index (CPI) or a fixed whole percentage rate of up to 5%.

legalsuper works hard to keep fees and costs low. Our sole purpose is to maximise the retirement savings of our members. We do not pay commission to agents, and are a ‘not for profit’ fund. For more information on legalsuper's Fixed Term Guaranteed Income Account go to Guaranteed Income Accounts - fees and charges.

To discuss legalsuper’s Fixed Term Guaranteed Income Account, please speak to a legalsuper Client Service Manager or your own Financial Adviser.

This information is of a general nature and does not take into account your specific needs. You should consider your own financial position, objectives and requirements before making any financial decisions. You should also obtain and read the legalsuper Guaranteed Income Account Product Disclosure Statement (PDS) before making your investment decision. Past performance is not a reliable indicator of future performance. Issued by Legal Super Pty Ltd, Goldfields House, Level 9, 627 Chapel Street, South Yarra VIC 3141. ABN 37 004 455 789 AFSL 246315 as the trustee for legalsuper ABN 60 346 078 879. The benefits provided by Lifetime Guaranteed Income Accounts are supported by the policy issued by Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670) (Challenger) and the Trustee will only pay members their income payments or withdrawal value to the extent that the Trustee receives payment from Challenger.

The initial dollar value of your regular income payments are determined when you purchase your Lifetime Income Account. Your income payments will depend on a number of factors like:

• Your initial capital investment
• Prevailing market rates
• The options you choose (e.g. which indexation option you select) 
• Your life expectancy at the time your purchase the product
• Whether you choose to include your spouse (a reversionary)

If you choose a beneficiary, and that person survives you, the regular payments will continue to be made to the reversionary beneficiary until they pass away.

If you are eligible for the Age Pension, a legalsuper Lifetime Guaranteed Income Account can help increase your Age Pension. Under the current Centrelink Income Test, part of the income from this product is treated as the return of capital (this is called ‘the deduction amount’) and is therefore not assessed. Under the current Asset Test the amount used to purchase the Lifetime Guaranteed Income Account reduces over time.

This could therefore mean more Age Pension for you (and your spouse).

A Lifetime Guaranteed Income Account can be tailored to give you a dependable income for life.

You select your payment options:

• Amount of indexation;
• Payment Frequency;
• Withdrawal period.

Then you start to receive your regular payments for your lifetime (unless you withdraw early).

You can choose to include a withdrawal period for your Lifetime Guarantee Income Account of up to your life expectancy. If your circumstances change, or if you simply change your mind, you can withdrawal your money within your chosen withdrawal period.

After the end of the withdrawal period your Lifetime Guaranteed Income Account ceases to have a withdrawal value, no lump sum is payable on your death and you cannot voluntarily withdraw. It is also important to remember that your account is designed to be held for life so if you withdraw your money during the withdrawal period, you may receive an amount less than the initial capital used to purchase the Lifetime Guaranteed Income Account even after taking into account the payments that have been made to you.

 For more information about accessing your capital, download the Product Disclosure Statement

The legalsuper Lifetime Guaranteed Income Account creates a regular income for life (unless you withdraw early), regardless of how long you live or how investment markets perform, giving you greater security and peace of mind in retirement.

If you choose a full or partial indexation option, your Lifetime Guaranteed Income Account can also protect you from inflation eroding the purchasing power of your regular payments.

legalsuper works hard to keep fees and costs low. Our sole purpose is to maximise the retirement savings of our members. We do not pay commission to agents, and are a ‘not for profit’ fund. 

For more information about legalsuper's Lifetime Guaranteed Income Account go to Guaranteed Income Accounts - Fees and Charges 

To discuss legalsuper’s Lifetime Guaranteed Income Account, please speak to a legalsuper Client Service Manager or your Financial Adviser.

This information is of a general nature and does not take into account your specific needs. You should consider your own financial position, objectives and requirements before making any financial decisions. You should also obtain and read the legalsuper Guaranteed Income Account Product Disclosure Statement (PDS) before making your investment decision. Past performance is not a reliable indicator of future performance. Issued by Legal Super Pty Ltd, Goldfields House, Level 9, 627 Chapel Street, South Yarra VIC 3141. ABN 37 004 455 789 AFSL 246315 as the trustee for legalsuper ABN 60 346 078 879. The benefits provided by Lifetime Guaranteed Income Accounts are supported by the policy issued by Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670) (Challenger) and the Trustee will only pay members their income payments or withdrawal value to the extent that the Trustee receives payment from Challenger.