Generation Life launches investment-linked lifetime annuity providing retirees with more income, more certainty, more flexibility, and more choice.
Designed to maximise retirement income and complement other retirement solutions for retirees, such as an account-based pension, LifeIncome provides investment choice, flexibility, and more income in the early years of retirement which aligns to actual spending patterns.
Generation Life Chief Executive Officer, Grant Hackett OAM, said LifeIncome offers Australian retirees a new era in retirement income solutions and is an important development following the Federal Government’s Retirement Income Review in 2020.
“The Retirement Income Review provides insights that many Australians enter retirement with significant savings – whether that be superannuation or other savings and assets – but there is little support to effectively manage those savings effectively. The result is often further accumulation in retirement, which can mean retirees miss out on the luxuries and lifestyles they’ve worked so hard for.”
“With around half a million Australians entering retirement over the next five years¹, there has never been a better time to solve the complexities often associated with retirement – balancing goals and objectives, finances and of course legacies. Combining an investment-linked lifetime annuity with other retirement income sources may allow retirees to achieve more of these retirement goals.”
“We are proud to be shaping the retirement income landscape with LifeIncome, applying our innovative approach to clients’ retirement income needs, meaning Australians can spend more time focusing on enjoying their retirement, with more confidence to spend their money and receive an income guaranteed for life.”
LifeIncome allows investors to be actively involved in the selection of the funds underpinning their investment – with 23 options across well-known fund managers including Vanguard, Dimensional Fund Advisers and BlackRock. Being investment-linked, income is reset annually and is linked to the performance of the investment options chosen, meaning that income can fluctuate from one year to the next. Investors have the flexibility to switch between investment options to suit their risk profile and changing needs.
Generation Life General Manager of Retirement Solutions, Patrick Clarke, said LifeIncome takes into account the spending habits of retirees and is designed to provide more income in the early years when they were more active and more likely to have greater expenses such as paying for holidays, enjoying retirement experiences or buying a new car.
“We are aware of retiree spending habits in retirement, which research demonstrates is greater in the early years of retirement and declines over time.² A key benefit of LifeIncome is that it enables an investor to receive more income in the early years of their retirement to meet this need.”
Available exclusively through financial advisers, LifeIncome offers:
An income guaranteed for the life of your client, and for their spouse if they choose
Investment choice with 23 options
Flexibility to switch between investment options
More income, sooner, with our exclusive LifeBooster feature
Increased Age Pension and social security benefits for a large number of your clients
To find out more about LifeIncome, contact one of our Distribution Managers and organise a demonstration session on the power of LifeIncome and the tools we’ve built to help you help your clients.
1. Note: reference period 2018-2019 financial year. Australian Bureau of Statistics, Retirement and Retirement Intentions, Australia - Retiree statistics and the retirement plans of people aged 45 years and over, issued May 2020
2. Grattan Institute 2018, Money in retirement: More than enough, https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-inretirement.pdf, published November 2018
Disclaimer: Generation Life Limited AFSL 225408 ABN 68 092 843 902 (Generation Life) is the product issuer. The information provided is general in nature and does not consider the investment objectives, financial situation or needs of any individual and is not intended to constitute personal financial advice. Professional financial advice is recommended. While all reasonable care has been taken in preparing the information, Generation Life makes no guarantee, warranty or representation as to its accuracy and you should not rely on it. Generation Life excludes, to the maximum extent permitted by law, any liability (including negligence) that might arise from this information or any reliance on it. Generation Life does not make any guarantee or representation as to any particular level of investment returns or income, pay back periods or age pension entitlements. Past performance is not an indication of future performance. The product’s Product Disclosure Statement and Target Market Determination should be considered in deciding whether to acquire, or continue to hold, the product and are available by contacting your financial adviser.