Variable annuities get green light
Lifetime Income Limited has been licensed by the Reserve Bank of New Zealand (RBNZ) and given approval to provide variable annuities in New Zealand.
Friday, December 11th 2015, 11:28AM 
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The new licence is the first of its kind in New Zealand.
It follows three years of work from the Retirement Income Group running Lifetime, including the issue of a new Reserve Bank solvency standard and a binding tax ruling from the IRD.
Managing director Ralph Stewart said: “We are very grateful for the help we have received from the advisory community, professional services firms, the Reserve Bank, Financial Markets Authority and IRD. Without exception, everyone that we have encountered in establishing the Lifetime Income Fund has understood the significance of providing financial security in retirement and have given us their support. Having developed the opportunity we can focus on building a business and delivering value to the retirment sector."
The Lifetime Income Fund starts issuing units today.
Investors who want regular pension payments to commence immediately will receive their first tax paid Lifetime Income payment on January 12.
It offers tax-paid lifetime income rates, fortnightly or monthly of:
Age 65 - 69 5.00%pa
Age 70 - 74 5.50%pa
Age 75 - 79 6.00%pa
Age 80 - 85 6.50%pa
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