Here are some key features of a TAP:
1. It is a retirement income stream that is paid out of your superannuation account.
2. The payments are usually made at regular intervals, such as weekly, fortnightly, or monthly.
3. The amount of the payment is based on the balance of your superannuation account, the investment returns it generates, and the length of the term.
4. You can choose the length of the term for the pension, subject to certain minimum and maximum limits set by the government.
5. At the end of the term, you can choose to receive a lump sum payment of any remaining balance in your superannuation account, or you can use the balance to fund a new pension.
6. If you pass away before the end of the term, any remaining balance in your superannuation account can be paid to your beneficiaries as a lump sum.
TAPs can be a useful way to generate income in retirement for a fixed period of time, but it's important to consider the potential risks and benefits and seek financial advice before making any decisions. A financial adviser can help you to determine if a TAP is suitable for your individual circumstances and assist you in developing a comprehensive retirement plan.