Term Allocated Pension - TAP
Term allocated pension combines the investment flexibility of an allocated pension with the social security benefits of a complying income stream.
With a term allocated pension you can take advantage of the government’s 50% exemption from the assets test, potentially increasing the amount of Age Pension you may be entitled to.
The main features of the term allocated pension products are detailed in the table below:
| Purchase age | You can purchase at any age |
| Investment money | Superannuation benefits or eligible termination payments (ie you cannot contribute personal savings) |
| Minimum initial investment | $20,000 |
| Market linked balance | Yes |
| Investment risk | Yes – linked to the performance of your chosen investments |
| Additional deposits | No |
| Term | Based on life expectancy |
| Investment options | A range of multi-manager and single manager options |
| Income payment frequency | Monthly, quarterly, half-yearly or yearly |
| Income options | Varies from year to year with no ability to select income level |
| Commutations (ie lump sum withdrawals | Not permitted except in limited circumstances |
| Balance at end of term | Zero |
| Social security benefits | 50% assets test exemption |
| Potential tax benefits | You may qualify for the higher pension Reasonable Benefit Limit (RBL) and 15% tax offset Earnings are tax exempt |
| Insurance | Generations - Death, Death & Total & Permanent Disablement and Salary Continuance Summit - Death only |
