“It’s a low type return that you’re locking in so you’ve got to be careful not to lock in too much. You’re probably not getting much return at the moment, about 4.5 per cent if you’re lucky,” said Mr Philpott.

‘It’s about having a balance so a small portion of money in these products is fine.”

HLB Mann Judd partner of wealth management and superannuation Michael Hutton said that SMSF trustees often think when interest rates are low it’s the best time to invest in a lifetime annuity.

“However when interest rates are low, that’s also when get the lowest actuarially calculated return for annuities as well,” said Mr Hutton.

“So it’s actually better to take out lifetime annuities when interest rates are really high.”