Back to KnowledgeBase

Is an ABP guaranteed for the life of the pensioner?

Unfortunately, no.  Depending on the pensioner’s life span, or the amount of income that is withdrawn under the ABP, there is a risk that the pensioner’s superannuation pension account could be exhausted prior to the pensioner’s death.  Also, the pensioner’s pension account balance is subject to investment risk, meaning that its value may rise and fall, as it is not guaranteed.  It may therefore be appropriate for members to consult a financial adviser before deciding whether or not to commence an ABP.