MLC offers retirement-focused solution

The MLC MasterKey Investment Protection offering will allow retirees to invest in the equities market at the same time as protecting their superannuation and pension assets from volatile market conditions.
"Many investors are reassessing their allocation to cash products given the fall in interest rates," MLC retirement solutions general manager Andrew Barnett said.

"While the move has been touted as good for the economy and homeowners, retirees and pre-retirees who have increasingly relied on term deposits to provide them with low-risk income following the global financial crisis, are suffering financially as interest rates drop in response."

The Reserve Bank of Australia reduced the official cash rate by 25 basis points last week to reach three per cent.
 
MLC MasterKey Investment Protection is designed for people approaching, or in retirement, with accumulated retirement savings between $30,000 and $2 million.

Income can be protected for terms of 10 years, 20 years or life, and is offered at a cost of approximately 45 basis points to 200 basis points.

"Protected Income provides a minimum level of income paid into the member's account and can increase when the market performs well," Mr Barnett said.

"Protected Capital provides a minimum level of capital over a specified term, while also allowing for increases in the protected amount due to strong markets."

Earlier this year, demand for a greater investment menu prompted MLC to expand the MLC MasterKey offering with the addition of the Antares Elite Opportunities Fund, Antares High Growth Shares Fund, and the Altrinsic Global Equities Trust to its MasterKey Fundamentals.

The changes were part of the platform's development and follow enhancements announced at the end of 2011.