Navigator launch adds to flood of TAPs

Platform provider Navigator today became the latest fund manager to roll-out its own Term Allocated Pension (TAP) products ahead of law changes that will see the new income stream offerings going live on September 20.

The Navigator Super Solutions Growth Pension will let investors choose from 52 boutique and mainstream investment options while the Navigator Personal Retirement Plan Growth Pension will let retirees choose from 160. In a first for the TAP market, the Super Solutions product will offer capital protection on selected investments.

TAPs, also known as growth pensions, offer a non-commutable income stream that allows retirees to invest while claiming an exemption from the aged pension asset test.

Navigator general products manager, Tim Cobb says TAPs are a “new breed of product” allowing retirees and pre-retirees to take more control of their superannuation.

“Every bit of income during retirement is welcome. The growth pensions help retirees structure their finances in a way which will maximize any possible income, including the aged pension,” Cobb says.

Navigator joins AMP, ING and Macquarie as companies which have already launched a TAP product.

Meanwhile one of Navigator’s biggest competitors in the platform market, Colonial First State will launch its product in early October with fund managers such as AXA, Mariner and BT also set to launch products in the near future.

Investment and Financial Services Association chief executive Richard Gilbert says up to half of the association’s more than 100 members could be offering growth pensions within the next 12 months.