Note: In this article, Sean Corbett, an annuities expert and a SuperGuide guest contributor, answers the important question of when is the right time to purchase a deferred lifetime annuity. Separately, Sean has also written an excellent article comparing different retirement options, and under what circumstances such products would be most beneficial for retirees. He also explains the role that deferred lifetime annuities can play in reducing longevity risk, while protecting income and still leaving some money for the kids and grandkids (see SuperGuide articles Guest contributor: Reducing the risk of outliving your retirement savings and also background article Deferred lifetime annuities: Why does the Government want you to use them?). The link to these two articles also appear at the end of the article you are now reading.
Since 1 July 2017, the government has extended the tax exemption on earnings in the retirement phase (currently applicable to superannuation pensions) to other retirement products, such as deferred lifetime annuities and in-house annuity products that super funds, or other financial organisations, may want to offer.
Is there an optimal time (during retirement) at which a deferred annuity should be purchased?
Join SuperGuide Premium to read the rest of this article
Or login below if you are already a member.
