Retirement Planning

Bond Overview and Key CharacteristicsThe 1.25% Treasury Bond May 2032 is a nominal, fixed-rate semi-annual coupon security issued by the Commonwealth of Australia through the Australian Office of Financial Management (AOFM). It carries a fixed annual coupon of 1.25% paid semi-annually and matures on …

As a Treasury Indexed Bond (TIB), the security’s face value is adjusted for movements in the Consumer Price Index (CPI). Both the semi-annual coupon and the final principal repayment are calculated on the inflation-adjusted (indexed) capital value, so the instrument delivers a contractually protected …

A full commutation is the complete conversion of a superannuation income stream into a lump sum, effectively ending the pension. Once commuted, the remaining balance can be withdrawn, retained in accumulation, or used to commence a new income stream.

A lifetimeAnnuityis a retirement income product issued by aLife insurancecompany that provides a regular, guaranteed income for the rest of the policyholder’s life in exchange for a lump sum investment. It is primarily designed to address longevity risk, which is the risk of outliving …

An investment-linkedAnnuityis a retirement income product issued by aLife insurancecompany in Australia that provides regular income payments, where the amount varies depending on the performance of an underlying investment option selected by the purchaser. It is designed to combine the stability of lifetime income …

A lifetime pension is a superannuation income stream that provides regular income for the rest of a member’s life, or for the joint lives of the member and a reversionary beneficiary. It is designed to reduce longevity risk — the risk that a retiree …

A managed fund is a pooled investment structure in which investors’ money is combined and managed by a professionalFund Manageraccording to a defined investment strategy. The manager makes investment decisions on behalf of investors with the objective of achieving the fund’s stated goals.