AMP turns advice strategy into new super product | Australian Markets

AMP Limited has launched a new superannuation product which leverages off the Centrelink concession guidelines to help members entry more entitlements and larger retirement income.

The company is claiming that the new product, AMP Super Lifetime, can increase income by more than $100,000 within the first 10 years of retirement with out members altering how their superannuation is invested and with out further charges.

The strategy shall be acquainted to financial advisers, however up to now has not been packaged as a product. It shall be initially obtainable to members below the age of 58 and who haven’t met a full situation of release of their account.

The product is designed across the Centrelink concession guidelines and the power to scale back the quantity of super counted within the age pension belongings check – “potentially increasing entitlements and retirement income by more than $100,000 in the first 10 years of retirement”.

AMP is advertising the product with the message that the youthful Australians take benefit of the function, the larger their potential income increase in retirement shall be.

AMP Group Executive, Superannuation and Investments, Melinda Howes described the product as a breakthrough innovation for the superannuation industry – “a simple, no-cost feature that can significantly increase retirement income and improve access to the Age Pension”.

“It’s designed to quietly work in the background, using Government rules to unlock more income when it matters most,” she mentioned.

AMP’s description of how the product works is as follows:

▪ Once activated, AMP Super Lifetime runs robotically within the background of a member’s super account, creating a ‘concessional’ steadiness. Members incur no further charges, and the member’s precise super steadiness is unaffected.

▪ This ‘concessional’ steadiness makes use of the deeming charge as its growth charge, as a substitute of the precise return of the super fund. This deeming charge is presently 2.25% and is set by the Government.

▪ Over time, that is anticipated to create a ‘concessional’ steadiness that’s decrease than the member’s precise super steadiness. This ‘concessional’ steadiness is referred to by the Government because the Purchase Price.

▪ At retirement, the member can select to maneuver some of their super into an AMP Lifetime Pension account, designed to supply income for all times and to work alongside the AMP Super Allocated Pension.

▪ When Centrelink assesses the member’s eligibility for the age pension, it makes use of the decrease ‘concessional’ steadiness for the portion invested within the AMP Lifetime Pension, as a substitute of the member’s precise super steadiness. This might help the member qualify for more Age Pension, boosting their income in retirement.

▪ With elevated certainty and financial confidence, many retirees might in flip select to attract a larger income from their AMP Allocated Pension, additional boosting income and bettering high quality of life of their earlier lively retirement years.

AMP mentioned eligible AMP Super Choice members have had the function robotically added to their account, whereas eligible MySuper members have the option so as to add the function.