Investors spoilt for TAP choice
MLC and Fiducian Portfolio Services have marked today’s official release date of term allocated pensions (TAPs) by launching four more of the new retirement income stream products into the market.
MLC says the MasterKey TAP, MasterKey Superannuation TAP and MasterKey Custom Self Managed Super TAP will let investors access 40, 130 and 160 investment options respectively including all Australian Stock Exchange listed shares, fixed interest securities and, for the Self Managed Super TAP, private assets.
Meanwhile, the Fiducian TAP will share all the investment characteristics of Fiducian’s existing allocated pension.
Fiducian’s managing director Indy Singh says that unlike rival TAP offerings, Fiducian’s products will be immediately integrated into its on-line service to advisers.
“Fiducian’s term allocated pension complements Fiducian’s existing suite of services and offers investment flexibility not available in traditional life products, as well as exposure to Fiducian’s highly successful Manage the Manager style funds,” says Schroeder.
TAPs, also known as growth pensions, allow retirees to access social security or the higher pension RBL and invest in securities at the same time.
“Previously these concessions were only available via a complying annuity, or a complying pension run through a self managed super fund,” MLC retail investments chief executive Michael Tucker
He says the introduction of TAPs brings a number of planning opportunities for retirees and those looking to retire in the near future.
“The TAP is generally more flexible than a complying annuity, allowing a choice of investments including growth assets, and is simpler than a complying lifetime or fixed term pension in SMSF,” Tucker said.
MLC and Fiducian’s TAPS - as well as TAPs recently launched by the likes of AMP, ING, Mariner, Credit Suisse, Asgard and Navigator - will be allowed to be sold to investors from today.
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