I was reading about lifetime income streams. We’re retired and wondering whether this could benefit us. If so, how do we go about accessing one? Is it something that’s done through your superannuation fund, or are there independent providers?

Lifetime income streams are products recently developed to provide retirees with more certainty around cash flow, allowing them to spend with confidence and reduce the risk of running out of money.

In essence, you’re exchanging a lump sum for a lifetime income stream, which means you generally forfeit access to that capital permanently. However, the structure of the income stream can vary greatly.

In recent years, income options outside of the age pension or your superannuation have become increasingly popular – and easier to understand.Credit: Simon Letch

It may be indexed or fixed, may include payments to a surviving partner, and some products offer a guaranteed period – such as 10 years – during which a portion of the original sum may be refunded to your estate if you pass away early.

Some products are market linked, others are not, and the type of underlying asset will affect the return. Depending on the product, they can be purchased with money from super or from outside super.

They are particularly useful for those approaching the upper threshold of the aged pension assets test, as only 60 per cent of the purchase price is counted under the........

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