Guaranteed Income for Life

As you get closer to retirement—or if you’re already enjoying it—you might be wondering how to make your money last. One option that’s getting more attention in Australia is something called a lifetime guaranteed income stream. It might sound complicated, but it’s actually a simple idea: it’s a way to make sure you keep getting money for the rest of your life, no matter how long you live.

What Is a Lifetime Guaranteed Income Stream?

A lifetime income stream is a financial product that gives you regular payments for life. Think of it like a personal pension. You use part of your superannuation or savings to buy it, and in return, you get a steady income—just like a wage—until the end of your life.

Why Is This Important?

Australians are living longer than ever. If you’re 65 today, you might live another 20 to 25 years or more. That’s great news—but it also means your savings need to stretch further. Many retirees worry about running out of money, especially if they rely only on account-based pensions, which can run dry if markets drop or if you live longer than expected.

Benefits of Lifetime Income Streams

Here are some key reasons why these products are worth considering:

• Peace of Mind: You’ll always have money coming in, no matter how long you live.
• Less Stress: You won’t need to constantly worry about how much to withdraw or whether your savings will last.
• Better Planning: With a guaranteed income, you can budget more confidently and enjoy retirement without financial fear.
• Protection Against Market Ups and Downs: Unlike account-based pensions, your income doesn’t have to depend on how the stock market performs.
• Flexibility: You have the option to retain access to some of your funds in case you need a lump sum amount or you would like to leave a legacy to your family.
• Social Security: Your Age Pension entitlements may be enhanced as some lifetime income streams are treated favourably by Centrelink/DVA.

How Do They Work?

You can buy a lifetime income stream through some super funds or insurance companies. You decide how much of your super or savings to use, and they calculate how much you’ll get paid regularly. Many products even adjust for inflation, so your income keeps up with rising costs.

Is It Right for You?

These products aren’t for everyone. But if you want security and a simple way to manage your money in retirement, they’re worth a look. You don’t have to put all your savings into one—many people use a mix of account-based pensions and lifetime income streams to get the best of both worlds.

Final Thoughts

Retirement should be a time to relax and enjoy life, not worry about money. A lifetime guaranteed income stream can help make that possible. Talk to your financial adviser to see if it’s a good fit for your plans.