Guaranteed immediate annuity
A guaranteed immediate annuity provides a guaranteed, regular income, for either a term you select or the rest of your life – depending on the type of annuity purchased.
Your initial investment is locked in at a fixed rate of return for the term of your investment, and the capital and income is 100% guaranteed.
TRON offers three guaranteed immediate annuity products:
- Guaranteed Term Annuity;
- Guaranteed Lifetime Annuity; and
- Guaranteed Pension Plan.
The main features of the immediate annuity products are featured in the table below:
 |
Guaranteed Term Annuity
|
Guaranteed Lifetime Annuity
|
Guaranteed Pension Plan
|
| Purchase age | Any age | Any age | Any age |
| Investment money | Superannuation benefits, eligible termination payments, or your personal savings | Superannuation benefits, eligible termination payments, or your personal savings | Superannuation benefits only |
| Minimum initial investment | $20,000 | $20,000 | $20,000 |
| Market linked balance | No – competitive interest rates | No – competitive interest rates | No – competitive interest rates |
| Investment risk | No – capital and income payments are 100% guaranteed | No – capital and income payments are 100% guaranteed | No – capital and income payments are 100% guaranteed |
| Lump sum withdrawals (commutations) | Yes – if you select a commutable annuity | Yes – if you select a commutable annuity | Yes – if you select a commutable annuity (and pension is not a social security complying pension) |
| Additional deposits | No | No | No |
| Term | 1-25 years | Lifetime | 1-25 years; or Lifetime |
| Investment options | None – competitive interest rates | None – competitive interest rates | None – competitive interest rates |
| Income payment frequency | Monthly, quarterly, half-yearly or yearly | Monthly, quarterly, half-yearly or yearly | Monthly, quarterly, half-yearly or yearly |
| Income options | Flexible at commencement – can be interest rate earnings only, or part original capital also; Can be increased in line with CPI or a fixed percentage rate |
Flexible at commencement – can be interest rate earnings only, or part original capital also; Can be increased in line with CPI or a fixed percentage rate |
Flexible at commencement – can be interest rate earnings only, or part original capital also; Can be increased in line with CPI or a fixed percentage rate |
| Balance at end of term | Can be: Full original capital amount invested; A nominated % amount of original capital invested; or Nil |
Can be: Full original capital amount invested; A nominated % amount of original capital; or Nil |
For 1-25 years option can be: A nominated % amount of original capital invested; or Nil For lifetime option can be: A nominated % amount of original capital invested; or Remaining balance – paid to dependant |
| Social security benefits | Can be structured as a complying annuity for social security purposes | Can be structured as a complying annuity for social security purposes | Can be structured as a complying pension for social security purposes |
| Potential tax benefits | Potential tax rebate on taxable portion of income payments (super money only) | Potential tax rebate on taxable portion of income payments (super money only) | Potential tax rebate on taxable portion of income payments; Fund earnings are tax-exempt |
| Insurance | No | No | No |
