An annuity (also known as a lifetime or fixed-term payment) is a financial product that can be used to provide you with a regular income in retirement for a particular time period, ranging from a year or two through to your lifetime.

Lifetime annuities will pay you a regular income for life, regardless of how long you live, helping to give peace of mind in retirement. Options regarding increasing the payments with CPI, and estate planning considerations are available to ensure the annuity is setup to meet your needs.
An annuity can be started with money from superannuation or personal savings. There are tax considerations to consider depending on the rest of your financial situation.

Term annuities provide a guaranteed, regular income for a fixed term you choose with flexible capital return options at maturity. There are varying payment frequencies and capital repayment options available. Being an annuity, the payments are guaranteed regardless of how share markets perform.

Annuities can be used in conjunction with regular superannuation and non-super money, often used to provide a known guaranteed income. As a consequence to that, they reduce the accessibility you have to your capital if you need to meet a one-off expense that isn’t covered by your annuity payments. Some providers may charge a fee to break the annuity term if you need to access your capital.