TelstraSuper has launched a new retirement income product, RetireAccess Lifetime Pension, designed to give retirees more confidence to spend money without fear of their savings running out or being eroded.
The new product, developed in partnership with Challenger, is said to “provide a guaranteed income for life”, with the option of being market-linked or indexed against inflation and can be integrated with a member’s existing account-based pension.
The fund said a typical scenario could be a retiree investing 30 per cent of their retirement savings into the lifetime pension, with the remaining 70 per cent invested in an account-based pension.
Members will be able to access capital for “a long period” based on life expectancy. If members need to withdraw, or if they pass away during the withdrawal period, access is available.
Only 60 per cent of the amount invested counts towards the Age Pension assets test until age 84, or for a minimum of five years (after which only 30 per cent counts).
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