What is a guaranteed annuity?
A guaranteed annuity is a secure investment that pays you a guaranteed income throughout your retirement.
For a minimum lump sum investment you receive:
- Regular payments for either a fixed period of time or the rest of your life
- Peace of mind that your capital and income are guaranteed, regardless of changes in financial markets
- Tax benefits if you’re 55 or over and investing with super.
Guaranteed annuities are particularly suitable for people who want a regular retirement income that meets their everyday needs.
How does a guaranteed annuity work?
Invest a minimum lump sum of $10,000 from either your super or personal savings.
If you invest from super and are aged 60 or over your payments will be tax free. If you’re between 55 and 59 years you’ll receive a 15% tax offset.
Guaranteed annuities aren’t affected by share market movements or changes to interest rates.
Both your capital and income is guaranteed, and you can choose to receive payments monthly, quarterly, half yearly or yearly.
Set your own terms and invest for a fixed period from 1 to 30 years.
Alternatively, you can choose to receive payments for the rest of your life.
Learn more about Guaranteed Annuities
How a guaranteed annuity can work for you
There are potential tax benefits to investing your super in a guaranteed annuity.
- Income payments are tax free if you’re 60 or over
- There’s a 15% tax offset if you’re between 55 and 59 years.
Ongoing costs related to investment property can become a hassle when you retire. Selling up and putting your money in a guaranteed annuity could be a better option for creating regular, low risk income.
How do I apply?
To apply for a guaranteed annuity, you need to complete an application form, which can be found in the Product Disclosure Statement (PDS). You can obtain a copy of the Annuities PDS here. We recommend you read the PDS carefully and seek financial advice before investing in an annuity.
Overseas residents can also apply for a guaranteed annuity, however some restrictions do apply.
Wherever you reside, we've all the forms and documents you need online, to help set up your guaranteed annuity
Things to know before you CAN:
As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances.
Lifestream Guaranteed Income is issued by The Colonial Mutual Life Assurance Society Limited (CMLA), ABN 12 004 021 809, AFSL 235035. A Product Disclosure Statement for Lifestream Guaranteed Income is available by clicking here or from your Financial Adviser or by calling CommInsure on 1800 624 100, and should be considered before making any decision about Lifestream Guaranteed Income. Please view our Financial Services Guide.
Any tax or Social Security information is based on the continuation of present laws and their interpretation that were current as at the latest Product Disclosure Statement.
Commonwealth Bank of Australia ABN 48 123 123 124 and its subsidiaries (excluding CMLA) do not guarantee or in any way stand behind Lifestream Guaranteed Income or the repayment of capital or interest by CMLA. Investments in Lifestream Guaranteed Income are not deposits or other liabilities of Commonwealth Bank of Australia or its subsidiaries (excluding CMLA).
CommInsure is a registered business name of The Colonial Mutual Life Assurance Society Limited.
The offer made in this PDS is currently available only to persons receiving this document within Australia. Applications from outside Australia will not be accepted.
Taxation considerations are general and based on present taxation laws and may be subject to change. CMLA is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on information in the case study to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.