Research house Chant West has awarded the MLC Retirement Boost product its highest possible rating of ‘Four Apples – Recommended’, indicating it delivers some of the highest income rates of an offering of this kind.
The product is available on MLC Expand and can provide retirees up to 60 per cent more income in retirement via an extra annual payment through an arrangement with insurance partner TAL. In addition, it has better concessional treatment for Centrelink means test purposes due to its classification as an innovative retirement income stream.
As part of its assessment, Chant West modelled a range of scenarios using the product, including different income levels and singles versus couples.
“In all scenarios, key income metrics were almost always higher using a 50/50 strategy with MLC Retirement Boost and an account-based pension than with just an account-based pension,” Chant West general manager Ian Fryer explained.
Further, the research house noted the product allows advisers to meet a range of client needs through its flexibility and its client portals had good functionality and a well-presented interface.
“Receiving a ‘Four Apples – Recommended’ rating from Chant West is a strong endorsement of what we’ve set out to achieve with MLC Retirement Boost – giving Australians more confidence and more certainty in retirement. It reinforces that the market recognises the value of solutions like MLC Retirement Boost that help people make the most of their super,” MLC Expand chief executive Liz McCarthy said.
McCarthy revealed the organisation is seeing advisers adopt MLC Retirement Boost faster than they anticipated, with the recent rating from Chant West reflecting its momentum.
“The solution is resonating because it addresses what retirees tell us they want most: dependable income and confidence it will last throughout their whole retirement,” she suggested.
Chant West found the outcomes delivered from MLC Retirement Boost (Pension) were slightly above other similar lifetime products.
“Its range of features may lead to better outcomes than most other lifetime products. Use of Retirement Boost (Super) approaching retirement also further improves outcomes,” Fryer recognised.
