Lifetime lowers investment bar
Lifetime has released a number of changes.
It is the first variable annuity product provider in the country. Investors are guaranteed a set rate of income through their lives, which includes the drawdown of their invested capital. If there is money left in the fund when they die, it is returned to their estate. Lifetime has an insurance product to manage longevity risk.
The change include a new income rate based on an individual’s exact age when they invest. It has previously offered income rates in five-year bands, increasing by 0.5% with each band. People aged between 65 and 69 when they first started to take an income from Lifetime could expect 5% after fees and taxes and those 70 to 74, 5.5%.
But now it will offer a rate for each year of age, increasing by 0.1% for every year older an investor is when they start receiving payments.
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