Outsourcing your retirement income needs to an annuity provider was supposed to reduce your anxiety levels. Recent developments at the likes of Challenger are causing annuity owners some disquiet.
annuities
Retirees adopting income layering strategies using different structures
While superannuation has done its job in providing a low tax environment to save for retirement, Austock Life is finding that more clients that have ordinary money invested are seeking other annuity-like structures to sit alongside their superannuation pension accounts or ordinary annuities to boost income and make the money last longer. Clients, or their […]
Insurance bonds that act like annuities
An Imputation Bond can be set to generate a tax-effective and regular “annuity-like” payment stream. Unlike ordinary annuities, there is total flexibility to vary at any time the stream’s payment amounts and/or their frequency of drawing them against the insurance bond’s value. “But it is important to understand that an Imputation Bond regular payment stream […]
The annuities vs pensions wars break out
Highlights from Townsends Business & Corporate Lawyers principal Peter Townsend Annuities are risky if the company providing them goes belly up; ‘Budgeter Bob’ is not covered by the government protection to certain deposits with banks. Account-based pensions are risky if the market moves unfavourably. ‘Fast Eddie’ must continue to draw the minimum annual amount required […]