Industry fund delivers post-retirement product

"funds management"

23 May 2016
| By Mike |
image
image
expand image

Queensland-based industry fund Energy Super has become the latest entity to deliver a post-retirement product to members via a relationship with Mercer.

The fund announced today that its members would soon be able to access a retirement income for life as part of the partnership with Mercer via a new account-based pension investment option called Energy Super LifetimePlus.

The product is being marketed to members as removing uncertainty and allowing them to more easily plan and live the retirement lifestyle they desire but the upside for the fund is that it allows members to keep their super in the fund post their retirement.

Mercer and the Energy Super are describing the new product as combining an investment strategy focussed on capital preservation with a unique longevity-risk pool.

They describe it as delivering three income streams to members including: quarterly investment returns, a half-yearly bonus for as long as members live, and capital returns paid half-yearly after 15 years.

"It is an income for life from an account based pension with no insurance premiums," the promotional material said.

Commenting on the move, Energy Super chief executive, Robyn Petrou said LifetimePlus offered more affordable longevity risk protection compared to traditional annuity products.

"The development of this product with Mercer is the result of more than two years' research and investigation into how we can help members to better protect their financial futures in the face of growing longevity risk," she said

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

7 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 12 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 10 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 13 hours ago