LifeIncome is a first-of-its-kind investment-linked lifetime annuity that offers you and your loved one* the confidence to enjoy your retirement with a regular income that is guaranteed for life.
LifeIncome Flex is a feature of LifeIncome that offers you the flexibility to receive more income when you and your loved one are both younger, healthier and alive. In return, your income will reduce when either you or your loved one passes away, as your income requirements change.
Research in both Australia and across the globe shows that spending in retirement is highest in the earlier years, when a retiree is healthier and more active. It has been proven that spending then tends to slow at around age 70 and decreases quickly after age 80.**
The graph below shows that Australians tend to spend less after they retire and spending tends to slow at around the age of 70 and decreases rapidly after 80. By receiving more income in the earlier years of retirement, you can more closely align your income with your spending over the course of your retirement journey.
Household spending by age cohort**
Studies also show that where retirees include a lifetime annuity, like LifeIncome, in their retirement portfolio, they spend more and have the freedom to enjoy their retirement. Conversely, where people haven’t implemented a solution to prevent them from running out of money, those people live more frugally and save their retirement savings, rather than spend them.
LifeIncome Flex offers you the opportunity to help you avoid experiencing ‘regret risk’ at the end of retirement, when you look back and wish you hadn’t lived so frugally in those early years, not knowing how long your money was going to last.
At Generation Life, we understand retirement is an emotional journey, not just a financial decision and we want all Australians to have the opportunity to enjoy their retirement. That’s why we’ve introduced LifeIncome Flex, allowing you to increase your income and help you make the most of your retirement. Your retirement is a well deserved reward after years of hard work, not a time to worry about your savings and whether you’ll run out of money.
At the time you apply for LifeIncome, you can choose to include your loved one to receive the income after your death. This person is known as a Reversionary Beneficiary. The benefit of choosing LifeIncome Flex is that you and your Reversionary Beneficiary can receive higher starting income and greater cumulative income sooner whilst you are both alive. The lower the LifeIncome Flex percentage you choose, the greater the starting income you will receive.
Similar to LifeBooster, which enables you to receive more income in the earlier years of your retirement, LifeIncome Flex offers you even more income whilst you and your Reversionary Beneficiary are both alive.
At Generation Life, we understand that as spending needs may change after the death of you or your Reversionary Beneficiary, so too may income requirements. This is because as an individual, you will not require the same level of income as a couple, to maintain the same lifestyle.
Speak to your Financial Adviser about LifeIncome and how LifeIncome Flex can help you more closely align your spending patterns over your retirement journey.
*If you are commencing LifeIncome with non-superannuation money, you could choose to include someone other than your spouse, such as your child or sibling.
**Grattan Institute 2018, Money in retirement, https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf, published November 2018.