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Guaranteed Income Account

For members aged 60 or over that are looking to convert their super into a guaranteed income for a set period of time, or for the rest of their life.

Guaranteed Income Accounts

legalsuper Lifetime & Fixed Term Guaranteed Income Accounts provide members aged 60 or over with a regular guaranteed income flow for their chosen fixed investment term (1 to 40 years), or for life regardless of how investment markets perform.

How it works

In exchange for an initial capital investment (minimum $20,000), a Fixed Term or Lifetime Guaranteed Income Account provides regular payments for a fixed term that you select, or for your lifetime. You receive a regular income that lasts for your entire chosen investment period.

Protection against share market volatility and inflation

The legalsuper Lifetime & 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. 

Fixed Term Guaranteed Income

Guaranteed income for your investment term

A legalsuper Fixed Term Guaranteed Income Account provides members aged 60 or over with a regular guaranteed income flow for their chosen investment term (1 to 40 years) regardless of how investment markets perform.



Fixed term Guaranteed Income Account features:
EligibilityMembers aged 60 or over who have access to unrestricted non-preserved superannuation money.
Minimum investment amount$20,000
Investment termYour lifetime or the lifetime of you and your spouse.
Payment frequencyMonthly, quarterly, half yearly or yearly.
Capital repayment optionsCapital is repaid to you over the investment term as part of your regular payments.
Payment indexationYou can choose to have your payments adjusted:
- Fully in line with increases in the Consumer Price Index (CPI);
- Partially in line with changes in the CPI; or
- Not at all.
Voluntary withdrawalsYou may choose to select a withdrawal period. If you have selected a withdrawal period,
partial withdrawals are not allowed and your account would be closed. 
On deathIf you die and you have elected a reversionary who survives you, regular payments (after any benefit reduction) are payable for the lifetime of your reversionary.

If you die before the withdrawal period has ended and you have not elected a reversionary, or your reversionary has died before you, a lump sum death benefit is payable to your dependants and/or your legal personal representatives.

If you die after the withdrawal period has ended and you have not elected a reversionary, or your reversionary has died before you, no death benefit is available and your account ceases.
More informationDownload the Product Disclosure Statement (below)
Guaranteed Income Account Product Disclosure Statement (451.8 KB)


How it works

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).

Regular income that lasts for your entire chosen investment period

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.

Protection against share market volatility and inflation

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%.

Withdrawal value illustrations

See the document below to view examples of voluntary withdrawal values and how they are impacted by rate movements.

Withdrawal value illustrations - Guaranteed Income Account (126.69 KB)


Fees and charges

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 

What next?
To discuss legalsuper’s Fixed Term Guaranteed Income Account, please speak to a legalsuper Client Service Manager or your own financial adviser.

Disclaimer

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, Level 37, 140 William Street, Melbourne, 3000. 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.

Lifetime Guaranteed Income

An income that can last for a lifetime

A legalsuper Lifetime Guaranteed Income Account gives members aged 60 or over a regular income that can last for the rest of your lifetime (unless you withdraw early). It provides members with regular payments, even if you live longer than expected.

A legalsuper Lifetime Guaranteed Income Account gives members aged 60 or over a regular income that can last for the rest of your lifetime (unless you withdraw early). It provides members with regular payments, even if you live longer than expected.


Lifetime Guaranteed Income Account Features:
Eligibility                                   Members aged 60 or over who have access to unrestricted non-preserved superannuation money.
Minimum investment amount                                                      $20,000
Investment termYour lifetime or the lifetime of you and your spouse.
Payment FrequencyMonthly, quarterly, half yearly, yearly.
Capital repayment optionsCapital is repaid to you over the investment term as part of your regular payments.
Payment indexationYou can choose to have your payments adjusted:
- Fully in line with increases in the Consumer Price Index (CPI)
- Partially in line with changes in the CPI; or
- Not at all.
Voluntary withdrawalsYou may choose to select a withdrawal period. If you have selected a withdrawal period, partial withdrawals are not allowed and your account would be closed.
On deathIf you die and you have elected a reversionary who survives you , regular payments (after any benefit reduction) are payable for the lifetime of your reversionary.

If you die before the withdrawal period has ended and you have not elected a reversionary, or your reversionary has died before you, a lump sum death benefit is payable to your dependants and/or your legal personal representatives.

If you die after the withdrawal period has ended and you have not elected a reversionary, or your reversionary has died before you, no death benefit is available and your account ceases.
More informationDownload the Product Disclosure Statement (below)
Guaranteed Income Account Product Disclosure Statement (451.8 KB)


How it works

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.

Ability to complement your Age Pension

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).

Access to your capital

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 below:

Guaranteed Income Account Product Disclosure Statement (451.8 KB)


Protection against share market volatility and inflation

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.

Inflation protection

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.

Withdrawal value illustrations 

See the below document to view examples of voluntary withdrawal values and how they are impacted by rate movements. 

Withdrawal value illustrations - Guaranteed Income Account (126.69 KB)


Fees and charges

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 

What next?

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

Disclaimer

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, Level 37, 140 William Street, Melbourne, 3000. 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.

Adviser use only

If you are a financial adviser and you have obtained a username and password for legalsuper's Guaranteed Income Portal, please follow the below link to login. Please note that this is for financial advisor use only. 
 


If you are a financial adviser and need to obtain a username and password, please complete the following form and email to: mail@legalsuper.com.au


Request for Adviser access to legalsuper Guaranteed Income quotation platform (53.99 KB)