Retirement phase income streams
What are the payment standards for fixed term income streams?
Commutable fixed term income streams operate under the same standards as commutable lifetime income streams other than in respect of the term of the income stream.
Payment standards for fixed term income streams
|Feature||Commutable fixed term income stream|
|Term of the income stream||Payable for a fixed term that is no greater than age 100 minus age at commencement.|
|Income payment||First year's payment must be at least amount calculated using relevant percentage factor.|
|Indexation||Income payments can only vary through:
|Use of capital||Not specified.|
|Reversion||Can only revert to a dependant. If the dependant is a child, the income stream may only revert to a child under age 18 or a financial dependant under age 25, and the reversionary income stream must cease at age 25. The income stream may revert without restriction to a disabled child of any age.|
|Able to be used as security for borrowing||No.|
Last modified: Wednesday, July 24, 2019