Can the income from my Secure Retirement Income (SRI) investment increase if I don’t start taking it immediately?

Yes. If you don’t want to take income straight away you don’t have to and the later you leave it the higher your income could be.

The amount of income you will receive is worked out by multiplying your income rate with your income base.

Increasing your income rate

Your income rate is based on the age at which you start taking an income from your SRI investment. The older you are when your income starts, the higher that income rate will be.

Increasing your income base

In addition, on each review date anniversary before you start taking a secure income we’ll automatically increase your income base by at least 3.25% of your original investment – we call this a guaranteed pre-income increase.

However, we could increase your income base by more if your fund has done well. Here’s how it works. At the review date of your SRI investment, we look back to see what the fund value was on the SRI review date anniversary and each of the corresponding monthly anniversaries – we call these dates the monthiversaries.

We take the highest monthiversary value and, if it's higher than your current income base plus 3.25%, this will become your new income base instead.

This means that your income base will increase to the higher of:

  • Ÿ Ÿ  the current income base plus 3.25% of your original investment; or
  •    the monthiversary lock-in value*.

*Proportionately reduced for any switches out of your SRI investment.

Please bear in mind that income payments and charges will reduce the value of your savings over time. Changes to your fund value will also affect how much your savings are worth. These factors in combination mean that the monthiversary feature is likely to only increase your income base in the early years of your investment.

You can see some examples of how this works on pages five and six of our leaflet  and find out more about SRI in our leaflet For an example and to see how it could be more, see page 5 and read the ‘Monthiversary deferral story’ on page 6 of our leaflet What is Secure Retirement Income? (PDF - 205kb)