Westpac’s new product offers secure retirement income.

In response to calls from financial advisers seeking alternatives to help their clients achieve retirement goals, Westpac Institutional Bank (Westpac) has launched its own annuity-styled product with a long term, guaranteed income stream.

The Westpac Annuity Deposit qualifies for the Government Guarantee provided under the Financial Claims Scheme¹, adding a new level of security for clients investing for retirement.

The off-platform solution is designed for advisers to meet a client-lead demand for lower risk, flexible products that provide a known and secure income at a competitive rate.

Westpac Head of Capital Market Solutions, David Van Ryn said “in simple terms, investors in the Westpac Annuity Deposit are buying a secure and guaranteed income stream.”

“Investors securing retirement income streams rely on their selected provider to continue to meet their obligations over the long haul.”

“Westpac is one of the largest deposit taking institutions in Australia with a history in banking approaching 200 years. This history, combined with access to the Government Guarantee in most cases¹, should provide investors with a high level of security and peace of mind when building a retirement income strategy,” he said.

A regular income stream is generated from the combination of the interest yield on the Westpac Annuity Deposit and the return of their principal, for a period up to 15 years.

“Investors choose a term of up to 15 years over which they want to receive income payments.  They also choose how frequently they want to receive the payments, how they want their principal repaid and finally whether they want the income payments to be indexed to inflation,” Mr Van Ryn said.

“Investors can select to invest a minimum of $50,000 and provide Westpac with the term, income frequency, indexation required and style of principal repayment they desire.  We can then calculate the income stream that this investment will secure,” he said.

Investors are provided an earnings rate to enable them to make a comparison with alternative products.

Westpac Annuity Deposits can be accessed through your Westpac Banker or directly through Westpac’s Investment and Deposit Desk on 1300 132 764.

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1. The Australian Government’s Financial Claims Scheme is designed to protect deposit holders in the event of Westpac’s insolvency.  Payments under the Scheme are subject to a $250,000 limit for each depositor for eligible deposits held with companies in the Westpac Group in aggregate, and remain subject to Ministerial discretion.

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