THE LONGEVITY CONVERSATION|Video 8 of 9

Blending income sources can materially improve outcomes for this group. Investment-linked annuities (ILAs) let clients participate in market returns while guaranteeing income continues for life, and only 60% of an ILA’s purchase price is assets-tested in the early years. So, splitting a balance between an account-based pension and an ILA can lift a client’s Age Pension entitlement well above what an account-based pension alone would deliver, without any extra savings.

The strategic uses of lifetime income products go beyond the headline number: an ILA can cover baseline living costs, provide reliable income later in retirement when health costs typically rise, and give clients the confidence to draw down remaining assets more freely, rather than hoarding them against an uncertain future. Our published case study of two similar clients, one with a materially smaller balance, shows how this plays out in practice. Worth a look for any client who assumes a lower balance rules out a comfortable retirement.

Related articles and resources:

• [Case Study] A Comfortable Retirement with Less Superannuation (Mary & Colleen)
• [Blog] How Much Do You Really Need to Retire? A Modern Retirement Standard
• [White Paper] Maximising Retirement Incomes – Part 1
• [White Paper] Maximising Retirement Incomes – Part 2
• [White Paper] Maximising Retirement Incomes – Part 3
• [Blog] Maximising Retirement Income for Middle Australia
• [Blog] Funding Your Bucket List with a Lifetime Income
• [Blog] The Super Magic Pudding Effect

NEXT IN THE LONGEVITY CONVERSATION
Video 9: Income Security or Flexibility? A Retirement Income Case Study