Industry fund NGS Super has launched a new retirement income product aimed at consumers in the drawdown phase of investment.
Launched on July 30, NGS Super chief executive Anthony Rodwell-Ball said its Income Generator product will appeal to retirees feeling the pain of a low interest rate environment.
“Our modelling shows that a portfolio focused on yield is particularly suited to retirees in Australia who want a reasonably stable income stream, but who want their capital to last as long as they do,” Mr Rodwell-Ball said.
“There is a good chance a member’s super may run out, especially as life expectancy in Australia continues to increase.
“NGS Super estimates that in the next decade around half of our funds under management will belong to members in the drawdown phase; and as baby boomers start retiring in droves, we expect that the demand for better retirement income products will skyrocket,” he added.
Mr Rodwell-Ball said the product is designed for high and low balance members to contribute towards better management of longevity risk and provide a stable income stream over the long term.
He also said the product is designed to provide income as well as income growth since it has an asset allocation of 30 per cent Australian equities and 22 per cent global equities.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 18 Aug 2017ASIC permanently bans former AMP adviserBy Staff Reporter
- 18 Aug 2017IRESS announces first half resultsBy Jessica Yun
- 18 Aug 2017Banks the key to closing advice gap, Tria saysBy Larissa Waterson
- 18 Aug 2017Adviser ethics certification launchedBy Staff Reporter
- 18 Aug 2017Banks evade FOFA, industry funds claimBy Larissa Waterson
- 16 Aug 2017UBS appoints head of wholesale distributionBy Staff Reporter
- view all