Liz McCarthy
MLC Expand has launched a new income deferral feature within MLC Retirement Boost™, giving financial advisers and their teams another way to help clients build retirement income strategies.
MLC Retirement Boost, MLC Expand’s innovative retirement income stream (IRIS) solution, can provide up to 60% more income in retirement when complemented by traditional retirement products like an account-based pension. It has two flexible phases:
- MLC Retirement Boost (Super) operates like a standard accumulation superannuation account, while potentially enabling clients to access means test concessions for the Government Age Pension. The earlier customers contribute to MLC Retirement Boost (Super), the greater their potential Age Pension entitlements.
- MLC Retirement Boost (Pension) is designed to deliver retirement income for life, with Chant West confirming it delivers some of the highest income rates of lifetime products, and can be used separately or alongside clients’ account-based pension.
The new income deferral feature within the Pension phase gives financial advisers additional flexibility when designing retirement strategies for eligible clients by allowing them to defer part of their retirement income. By creating a future income stream, the feature can help clients plan for higher spending needs later in retirement, including healthcare, aged care and other retirement expenses.
The launch expands the capabilities of MLC Retirement Boost, which was designed to support our members with greater confidence, flexibility and certainty in retirement and help advisers provide more personalised retirement solutions that can help optimise members’ retirement outcomes.
MLC Expand CEO, Liz McCarthy, said: “We’re seeing more Australians move into retirement gradually, whether that’s continuing to work part-time, retiring at different times from their partner, or simply wanting more flexibility about when they start drawing an income.
“This new income deferral feature within MLC Retirement Boost gives advisers another practical way to help clients shape their retirement around their individual circumstances. It allows clients to decide when lifetime income starts, while keeping more flexibility through the earlier years of retirement.
“For some clients, delaying income can support Age Pension outcomes and help grow the income available later in life. It can also provide confidence that they have money set aside for the years when they may need it most.”
MLC Director of Retirement Innovation, Ashton Jones said: “We’ve heard from advisers that retirement is rarely a single event. It’s often a transition that unfolds over several years. This enhancement supports those conversations and gives advisers more choice in how they help clients balance flexibility today with certainty for the future.
“MLC Retirement Boost was designed to help advisers have a different conversation with clients about retirement income and confidence. We’ve seen strong adviser adoption since launch, and with Chant West’s confirmation earlier this year that we have the highest lifetime income rates, advisers have consistently told us it’s helping give their clients greater confidence about their income throughout retirement.
“We’ve also listened to feedback from advisers and have now removed a previous product restriction that meant those aged over 58 years did not qualify for MLC Retirement Boost (Super). This, along with the introduction of income deferral are examples of how we’re continuing to build practical solutions that fit the way advisers and their support teams work, and help clients make more of their retirement savings.”