MLC moves to protect retirement savings
MLC has launched a new insurance product – MLC MasterKey Investment Protection.
The company announced the new product this week saying it was aimed at helping Australians protect their retirement savings from ongoing volatility in equity markets.
It said there were two forms of protection - protected capital and protected income – with clients being able to protect their savings for 10 and 20-year terms, as well as for life.
According to the promotional material surrounding the product, it is designed for people approaching or in retirement, with accumulated retirement savings between $30,000 and $2 million and provides a minimum level of income paid into the member’s account over a specific term and can increase due to positive market performance.
Commenting on the product, MLC Retirement Solutions general manager Andrew Barnett said there were a number of risks that threatened people’s ability to live a comfortable retirement.
“Market downturns, particularly those immediately before or after retirement, can decimate savings, while longevity risk – the risk we’ll outlive our money – is becoming more pronounced,” he said.
Barnett said MLC Investment Protection was intended to give peace of mind to people who wanted to actively manage these risks and protect their money.
“Not only does it protect savings from periods of negative or lower returns, it also gives investors the confidence to remain invested in the market so that they can take advantage of market increases,” he said.
The new product will be made available to customers in November.
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