AMP has launched the retirement version of its Super Lifetime product in a package also including an aged-care bonus feature.
AMP Lifetime Retirement Income provides members with an income for life, supported by insurer TAL. The amount of the relevant income payment depends on how much of a person’s superannuation benefit is allocated to their retirement-phase interest.
Further, the new package offering also includes extra income for home care, with AMP Super members eligible to receive a 20 per cent increase to their lifetime income for two years when they become eligible for high-level in-home care (level 5 or above in-home care).
The third prong to the package is a new tailored online experience with digital tools for individuals to help plan and manage their retirement.
The launch follows the release of AMP Super Lifetime in June last year, which helps pre-retirees increase retirement income through offsetting some monies before retirement to make greater use of Centrelink concessions for the age pension.
The financial services firm defaulted all choice members into AMP Super Lifetime, reasoning it was a better outcome for members to have the option turned on as soon as possible.
Once the feature is activated within a person’s superannuation account, it works automatically in the background creating a ‘concessional’ balance. This balance uses the deeming rate to determine growth, currently 2.75 per cent, instead of using a member’s investment earnings. The concessional balance, usually lower than the actual balance because of the low deeming rate, is then used to determine the member’s eligibility for the age pension.
Based on AMP calculations, the lifetime pension option allows members to spend an average 60 per cent more in retirement than they would without the option.
“We know that too many Australians remain uncertain about retirement – whether they have enough savings, how long it will last and how to make the right decisions,” AMP growth and customer solutions director Julie Slapp noted.
“This offering provides the confidence of income for life, the potential for higher income and the guidance members need to make informed decisions.”
The launch follows AMP research indicating 54 per cent of Australians aged 58 to 60 and half of those aged 61 to 65 often feel stressed or overwhelmed when thinking about their finances.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason