This revelation comes as retirement income solutions and products launch across the sector, giving advisers more choice than ever, but also making the market more crowded than ever.
According to feedback AMP has received, lifetime income solutions are helping give clients more confidence to spend in their retirement. This is in large part due to their ability to reduce longevity risk, or the fear many clients hold that they will outlive their savings.
Overall, more than $21 billion of members’ retirement savings are now invested across AMP’s lifetime income solutions, including more than $1 billion invested by North clients through MyNorth Lifetime since being launched in 2022.
“Advisers are telling us lifetime income can fundamentally change the retirement conversation, from whether clients can afford to spend, to how they can make the most of the years ahead,” Edwina Maloney, group executive of platforms, said.
“Having led the industry in the development of these new types of income solutions, we’ll continue to focus on giving advisers the flexibility, tools and support they need to turn retirement savings into reliable income and better client outcomes.”
Referencing two advisers, AMP stated that reception from the advice end about these solutions has been largely positive.
“Knowing that longevity risk is taken off the table means clients can spend with confidence and enjoy the fruits of their labour. And to do that while maintaining their long-term investment approach, together with some Centrelink uplift in many cases, is a great result,” Alex Berlee, director and principal planner at CLS Investment Services said.
Susan Morris, head of strategic advice and senior financial senior adviser at Hyland Financial Planning, said she feels these new solutions offer freedom to her clients.
“The tangible outcome of immediate age pension to support retirement income, together with the knowledge that a level of income will continue for life, helps assuage the fear of spending during the good times in the early years,” she said.
“Previously clients would often delay the big trips or more discretionary spending until a time when they might be less able to enjoy them due to ageing.”
Other recent retirement solutions to hit the market includes CFS’ ‘Innovative Retirement Solution’, which it launched in May of this year alongside Challenger, Generation Life and BlackRock.
