The challenges faced by retirees are confronting and difficult…

AMP, together with the Trustee of its superannuation funds, has published a summary of its Retirement Income Strategy, outlining an approach to helping members live more confidently and comfortably in retirement.

The Strategy, available here, applies to all AMP superannuation members approaching and in retirement, and delivers on a commitment as part of the Retirement Income Covenant, which takes effect from
1 July 2022.

Ben Hillier, AMP’s General Manager Retirement Solutions, commented: “The challenges faced by retirees are confronting and difficult, and knowing how much income can be sustainably drawn in retirement was described by Nobel laureate, William F. Sharpe, as the ‘nastiest, hardest problem in finance’.

“It’s why so many Australians worry they’ll outlive their savings, resulting in retirees taking a conservative approach to spending in retirement and in many cases passing away with a significant portion of their hard-earned nest eggs left unspent. With the Retirement Income Covenant serving as an important catalyst, our industry must better help our members in their post-working years.

“Retirement solutions should provide comfort and confidence for members to spend their savings. They must also be flexible enough to address unique needs, which differ based on wealth, household structure, attitudes to risk, health and lifestyle expectations.

“Through a combination of education, advice and innovative low-cost lifetime income products, set to be launched later in the year and complementing our existing suite of retirement products, AMP’s ambition is to help every customer enjoy a comfortable retirement.

“We’ll draw on our breadth of expertise across wealth management to provide tailored retirement solutions, firmly aligning with our Trustee’s purpose to provide the best possible outcomes for members.”

Read the strategy.

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