Fixed term pension or annuity

We are looking at all the different income stream products available and have come across a 'fixed term pension or annuity'. How can we buy one of these?

The Australian Investments and Securities Commission (ASIC) states that a fixed term pension or annuity is one of a number of products that you can buy with a lump sum from a superannuation fund, or money from other sources, to give you an income during your retirement.

Fixed term pensions can be purchased from a superannuation fund using superannuation money (that is, money paid out from a superannuation fund or a retirement savings account [RSA]). Fixed term annuities can be purchased from a life insurance company using either superannuation money or other savings.

Joint term annuities, where income payments are made to two or more beneficiaries, can only be purchased with other savings.

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