What is a Variable Annuity - Guaranteed Retirement Income?

A worry-free retirement income.

A Guaranteed Retirement Income is basically a paycheck, but without the work or the worry, for the duration of your retirement in return for a lump sum payment. The bigger the lump sum, the bigger the fortnightly payment. It is that simple.

There are many upsides to a Guaranteed Retirement Income, which uses your capital and your returns to pay you fortnightly, (or monthly), income payments. Upsides include paying you an income, even when your capital runs out. In fact, that income is exactly the same amount as before your lump sum ran out. So, no more worrying about outliving your money.

The Traditional Annuity never caught on in New Zealand, partly because investors are unable to get their money back, should they need it. Overseas annuities have also often proved poor value for money.

Unlike a Traditional Annuity, the Lifetime Income Variable Annuity allows investors to get their account balance out whenever they need it. This includes the estate receiving the account balance upon investor passing away.