Annuities

When it comes to generating an income during your retirement, it’s important to select the right option. Annuities provide regular payments over an agreed timeframe. You can purchase an annuity using a lump sum from your savings or the proceeds of your superannuation.

What are the benefits?

Fixed-term annuities pay a guaranteed income for a set period of time. It’s generally far more tax effective to convert your super into an annuity than to cash it out. This is because you may receive a tax offset on any taxable income if you are aged between 55 and 60 (conditions apply if you are under 55)¹. Payments are tax free if you are over 60 and have purchased the annuity with your superannuation money. In addition, any investment earnings are tax free.

With annuities, you can:

• Choose the amount of your payments
• Receive guaranteed regular income payments regardless of market movements
• Elect to receive payments monthly, quarterly, half-yearly or yearly
• In many cases, automatically increase your income payments in line with inflation, or by a fixed percentage each year
• Have your payments continue to another person on your death, or they can continue to your estate.²

More information and advice

If you’d like advice on annuities or setting up a regular income stream for your retirement, you can book an appointment online to organise a complimentary, no-obligation consultation with a Commonwealth Financial Planner.

Find out more

• Speak with your financial planner
• Download the Product Disclosure Statement
• Use our online booking form or contact us on 1800 241 996 between 8.30am and 5pm (EST) Monday to Friday to make an appointment with a Commonwealth Financial Planner.
• Drop into one of our branches today to make an appointment.

 

• Important information
  1. As at 1/02/2011.
  2. Conditions apply.
  3. The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.