Brief
AMP Super promotes guaranteed annuities to ease retirement anxiety
AMP Super outlines how annuities can offer steady, tax‑free income and pension benefits for retirees worried about market volatility.
By Felo News Desk · Published
AMP Super published a guide on 14 October 2026 urging Australians approaching retirement to consider guaranteed lifetime annuities as a way to remove market risk from their income stream.
What the guide explains
The article notes that many retirees feel uneasy about the performance of their superannuation investments and wonder how long their savings will last. It describes annuities as products that pay a regular income for life, with some options fixed for a set term such as ten years.
Tax treatment and Age Pension impact
According to the guide, if an annuity is funded from superannuation and the holder is aged 60 or over, the payments are tax‑free, mirroring the treatment of super income. For purchases made between ages 55 and 59, the income is taxed at the marginal rate minus a 15 percent tax offset, becoming tax‑free at age 60. When personal cash is used, the portion that returns the principal is tax‑free and the remainder is taxed at the individual's marginal rate.
Bold Wealth director Dylan Pargiter‑Green is quoted saying that Centrelink applies a 40 percent discount to both the asset and income value of lifetime annuities, potentially increasing eligibility for the Age Pension and related concession cards.
Product variations and estate planning
HLB Mann Judd SMSF manager Natalie Scott is cited explaining that some annuities allow a reversionary beneficiary – usually a spouse – to continue receiving payments after the holder’s death, while others do not.
Why the guide was issued
AMP Super frames the advice as a response to growing anxiety among retirees about volatile share markets and the desire for predictable cash flow throughout retirement.
Key facts
- Lifetime annuities pay a regular income for the holder's entire life. (smh.com.au)
- If funded from super and the holder is 60+, annuity payments are tax‑free. (smh.com.au)
- Centrelink discounts the asset and income value of annuities by 40 percent for Age Pension calculations. (smh.com.au)
- Some annuities allow a reversionary beneficiary to continue payments after death. (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Beat the stress of volatile shares with guaranteed retirement income”
