Ben Hillier

North has launched a new Retirement Philosophy, designed to help advice practices deepen their thinking on retirement advice and develop a clear, consistent approach tailored to their own clients.

Developed by the Retirement Confidence Hub, the Retirement Philosophy has six principles (SMILE+R) for managing client risks as they transition into retirement and reinforces the importance of addressing these challenges through a broader set of strategies, not investment selection alone.

It is a practical framework and discussion aid that supports advice practices to articulate how they think about retirement, the risks retirees face, and the trade‑offs clients must navigate as they approach and move through retirement.

AMP Retirement Confidence Hub Chair and Director of Retirement at AMP, Ben Hillier, said: “Retirement today is no longer a single decision or a short phase of life. Australians are retiring earlier, living longer, and facing more uncertainty than ever before.”

“Our Retirement Philosophy has been developed to help advice practices step back and articulate how they think about retirement advice – not just the products used, but the risks managed, the client needs prioritised and the outcomes they’re trying to deliver.”

“When clients understand how their retirement has been structured and why certain decisions have been made, it builds trust and confidence.”

“For advisers, having a documented retirement philosophy creates clarity across the advice team, supports consistent client experiences, and strengthens their value proposition in a highly competitive market.”

Delivering confidence and client-centred outcomes

According to AMP research, most older Australians find it challenging to navigate our retirement system with 3 in 4 Australians aged 50+ saying they find the system too complex^[1] and 2 in 5 holding back spending for fear of running out^[2]. In addition, over half (52%) of Australians aged 50+ are stressed or worried about having enough super for retirement.
A clearly articulated retirement philosophy can help advisers better serve this cohort of Australians heading into retirement by materially improving client confidence and the consistency of advice delivery.

Rather than prescribing a single approach, the Retirement Philosophy is intended to be adapted by practices to align with their own beliefs, values and client base, while helping advisers deliver more confident, client‑centred retirement outcomes.

The Philosophy also introduces a needs‑based framework for retirement, known as the Five Ls – Liquidity, Living, Lifestyle, Later and Legacy – to help advisers and clients have clearer conversations about what money is for at different stages of retirement, and the trade‑offs between spending now and planning for later life.

Evolving traditional approaches to retirement planning

According to Treasury’s Retirement Income Review, many Australians are not using the superannuation system as it is intended and could be drawing down more from their superannuation balances but fail to do so – with the majority passing away with the bulk of their wealth still intact.

The framework looks to solve this problem by encouraging advisers to move beyond planning to life expectancy alone, and instead consider planning to an ‘80 per cent confidence age’.

This recognises that many Australians will live well beyond average life expectancy and need greater certainty that essential living costs can be met for life.

Delivered through AMP’s Retirement Confidence Hub, the Retirement Philosophy forms part of a broader suite of thought leadership and structured resources designed to support advice practices as they help clients transition from accumulation to retirement and beyond.

AMP Group Executive, Platforms, Edwina Maloney said the framework responds to the growing complexity of retirement and the need for more structured advice conversations. It follows on from the launch of AMP’s Retirement Confidence Hub in September last year.

“At North, our retirement philosophy is built around one simple idea: confidence. Confidence that your essentials are covered for life. Confidence that you can ride out markets and inflation. And confidence to actually enjoy your retirement without a fear of running out or looking back with regret.

“That’s why our approach focuses on the real risks retirees face, not just financial ones, and designs strategies around how people actually live.

“Our aim with the Retirement Philosophy, alongside the Retirement Confidence Hub, is to give advisers practical frameworks and insights they can genuinely use.”

“This isn’t about telling practices what their philosophy should be, it’s about giving them the tools to develop one that reflects their clients, their business and their belief in what good retirement advice looks like.”

The Retirement Philosophy framework is available now to advice practices via the AMP Retirement Confidence Hub.

———

Notes:
[1] Source: Australians financially illiterate when it comes to retirement – AMP
[2] Source: AMP’s Retirement Confidence Pulse

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Ben Hillier

AMP research shows Australians are increasingly open to living with extended family under one roof to share costs, pool resources and manage financial pressures – a shift being driven most strongly by younger Australians and those without the buffer of a partner.

As housing unaffordability, rate increases and cost-of-living pressures bite, more than half of Australians (55%) say we should embrace multigenerational living – where extended families live together to share costs and support loved ones through financial challenges, and a model more common in some cultures around the world.

That finding speaks to a broader confidence challenge – as financial pressures mount on households. AMP’s Retirement Confidence Pulse1 shows only around half of Australians feel financially confident about life after work, underlining that confidence is increasingly shaped not just by super balances, but by the broader pressures around housing, caring and household structure.

Younger Australians more open to multi-gen living

Support for multigenerational living is strongest among younger Australians, with 68% of 20–39- year-olds in favour – compared with fewer than two in five Australians aged 65 and over – pointing to a generational shift in expectations around independence, home ownership and how families support each other.

The data also suggests the strongest support comes from Australians who can find financial pressures hardest to absorb alone: 61% of single Australians support the model, compared with just over half of partnered Australians. Women are also more supportive than men (58% vs 52%).

The key findings:

• Over half of Australians support adopting multigenerational living with extended family, to pool resources
• 2 in 3 (68%) Australians aged 20–39 support it (vs less than 2 in 5 Australians aged 65+)
• 3 in 5 (61%) single Australians support it (vs half of partnered Australians)
• Women are more likely than men to support it (58% vs 52%)
• 2 in 5 (38%) Australians aged 20-39 are relying on inheritance to get into the property market

Boomer wealth and housing unaffordability

The changing view of younger generations reflects a broader generational wealth divide. AMP analysis2 has previously found older households – particularly Baby Boomers – have benefited most from decades of strong asset price growth, especially in housing, while younger Australians have faced a much tougher path into home ownership, as affordability is now a major constraint to home ownership.

That divide has been reinforced by rising home prices and persistent housing supply constraints, which have lifted wealth for established owners while making housing less affordable for younger households. Against that backdrop, it is not surprising more Australians are becoming open to multigenerational living as a practical way to share costs, pool resources and build security.

Multicultural Australia

Openness to intergenerational living may also reflect adopted views from Australia’s growing multicultural society. Nearly one-third of Australians were born overseas (31.5%)3, and almost half have at least one parent born overseas (36.7% one parent; plus 11.5% both parents)4. Australia’s diversity also shows up in daily life, with nearly one-quarter (23.7%) 5 speaking a language other than English at home – meaning millions of households bring a wide mix of family living traditions into the mainstream, including those of some European and Asian cultures where multigenerational living is more common.

Ben Hillier, AMP’s Director of Retirement, commented: “As housing pressures intensify and Australia becomes increasingly multicultural, younger Australians are rethinking what the ‘Australian dream’ looks like. For many, support is no longer just about the ‘Bank of Mum and Dad’ – it’s about the ‘House of Mum and Dad’; with extended families open to sharing housing, costs and care in more practical ways.

“This shift also tells us something important about confidence for retirement, which in Australia has long been tied to home ownership. Alongside super, Australians’ sense of financial security will increasingly be shaped by the household around them – how families live, what support they can provide one another, and how costs and care are shared.”

Three things for families to keep in mind:

1. Start the conversation early: AMP research has highlighted that wealth and financial support can still be difficult topics for families to discuss openly. Starting the conversation early can help everyone better understand what support may be possible, and what is realistic.
2. Be clear about expectations: If multigenerational living is on the table, it helps to talk through how costs, responsibilities and day-to-day arrangements might work in practice. Being upfront early can help avoid tension later.
3. Think longer term: Shared living may help ease immediate cost-of-living pressure, but it can also be an opportunity to strengthen longer-term stability. For some families, that could mean more breathing room, more flexibility and greater confidence about the future.

———

Notes:
[1] AMP Retirement Confidence Pulse 2025
[2] AMP Econosights, Diana Mousina, The Australian generational wealth divide, May 2024
[3]Australian Bureau of Statistics, Australia’s Population by Country of Birth, Jun 2024
[4] Australian Bureau of Statistics, Nearly half of Australians have a parent born overseas, June 2022
[5] ABS 2021 Census QuickStats — Australia

The post Packed to the rafters – Multigenerational living gaining support as housing pressures and wealth divides reshape how Australians approach financial security appeared first on AdviserVoice.

Alexis George

AMP has launched the Retirement Confidence Pulse, a new national barometer tracking how financially confident Australians feel about life after work.

The inaugural Pulse score is 50/100 – a wake-up call that too many of us still lack financial peace of mind about retirement. The full report is available here.

The rising cost of living and surging household expenses have seen the annual cost of a comfortable retirement climb by more than $13,000 in just five years, with new ASFA data showing Australian couples aged 65 and over now need more than $75,000 a year to maintain that lifestyle^[1].

Alexis George, AMP Chief Executive, said: “Australians over the age of 65 will make up nearly a quarter of our population within four decades – a demographic shift set to reshape the nation’s economic and social landscape.

“Yet, as this Pulse shows, despite growing super balances and national wealth, too many feel financially insecure about life after work – an issue that needs to be front and centre for policymakers and the superannuation industry.”

• Gender gap: Only 2 in 5 women feel confident about retirement, versus nearly 3 in 5 men.
• The “Sandwich Generation”: Australians in their 40s are among the least confident (under 2 in 5) as they juggle mortgages, kids and caring for ageing parents.
• Single mums under pressure: Single mothers recorded particularly low confidence levels with less than 1 in 5 in their 40s confident about retirement, the second lowest of all tested.
• Confidence doesn’t arrive at 65: More than 1 in 3 Australians 65+ still feel financially insecure, worried their savings won’t last.
• The “confidence dividend” of coupledom: Partnered Australians (close to 3 in 5) are more confident than singles (2 in 5).
• Divorce dents security – especially for women: Only 1 in 3 separated/divorced women feel confident, versus over half of separated/divorced men.
• Work matters: Jobseekers in their 40s show deepest concerns, with just over 1 in 10 confident.
• The income divide: Confidence rises with income – 3 in 4 on $190K–$250K feel confident, versus 2 in 5 under $45K.
• The squeezed middle: Just half of middle-income Australians ($45K–$135K) are confident.

From insights to action: The Retirement Confidence Hub

To help turn these insights into practical solutions, AMP has created the Retirement Confidence Hub.

Through its Advisory Committee, the Hub brings together some of the most respected experts in the industry – including AMP’s Chief Economist Dr Shane Oliver and AMP’s Director of Retirement Ben Hillier. Nicola Stokes, CEO of the AMP Foundation, joins the Committee, ensuring the cross section of social and community needs are also addressed.

The Retirement Confidence Hub – Mission Statement: Harness AMP’s expertise to bridge insight with practical industry applications, raise awareness of key social issues and opportunities, and inform policy reform, to help more Australians be financially confident about their retirement.

Chair of The Retirement Confidence Hub, Ben Hillier, said: “The Pulse is our scoreboard; the Retirement Confidence Hub is our game plan – a standing effort to turn evidence into action so more Australians can feel confident about their retirement, and unlock a better quality of life.
“This requires a system that is easier to understand, improved financial literacy, easier access to guidance and advice at critical life moments, and more solutions that provide lifetime income and which unlock the considerable wealth tied up in property.”

About the AMP Retirement Confidence Pulse

The Pulse is based on AMP commissioned research of 2,000 Australians by independent research company, Dynata in July 2025.

 ———–

Notes:
[1] Annual cost is $75,319 per year for a couple and $53,289 for singles, according to the latest ASFA Retirement Standard. Compared to $61,909 and $43,687 respectively for the June quarter of 2020. (Source: ASFA, 2025)

The post Half of us financially insecure about retirement appeared first on AdviserVoice.

Melinda Howes

AMP has announced the designed to help millions of Australians unlock more income in retirement – without changing how their super is invested and without additional fees.

By utilising Centrelink concession rules, the feature reduces the amount of super counted in the age pension assets test – potentially increasing entitlements and retirement income by more than $100,000 in the first 10 years of retirement. The younger Australians take advantage of the feature, the greater the potential income uplift in their retirement.

AMP Super Lifetime’s transformative income generating qualities were recognised this week with the Chant West’s Innovation Award, building on the success of AMP’s multi-award-winning MyNorth Lifetime income solution.

Melinda Howes, AMP’s Group Executive, Superannuation & Investments, said that AMP Super Lifetime is a smart and efficient way for members to get more out of their superannuation.

“This is a breakthrough innovation for the superannuation industry and, most importantly, our members – 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.

“This is another important step in AMP’s commitment to helping more Australians retire with confidence. With AMP Super Lifetime, we’re giving our members the opportunity to make their super work harder without lifting a finger – no changes to how their money is invested and no added fees.”

• Once activated, AMP Super Lifetime runs automatically in the background of a member’s super account, creating a ‘concessional’ balance. Members incur no additional fees, and the member’s actual super balance is unaffected.
• This ‘concessional’ balance uses the deeming rate as its growth rate, instead of the actual return of the super fund. This deeming rate is currently 2.25% and is set by the Government.
• Over time, this is expected to create a ‘concessional’ balance that is lower than the member’s actual super balance. This ‘concessional’ balance is referred to by the Government as the Purchase Price.
• At retirement, the member can choose to move some of their super into an AMP Lifetime Pension account, designed to provide income for life and to work alongside the AMP Super Allocated Pension.
• When Centrelink assesses the member’s eligibility for the age pension, it uses the lower ‘concessional’ balance for the portion invested in the AMP Lifetime Pension, instead of the member’s actual super balance. This may help the member qualify for more Age Pension, boosting their income in retirement.
• With increased certainty and financial confidence, many retirees may in turn choose to draw a higher income from their AMP Allocated Pension, further boosting income and improving quality of life in their earlier active retirement years.

Ben Hillier, AMP’s Director of Retirement, said: “For many Australians, AMP Lifetime Super could mean tens of thousands of dollars in extra retirement income compared to traditional account-based pension. It’s a highly effective and simple way to improve quality of life in retirement.”

AMP Super Lifetime is initially available to members under the age of 58 and who have not met a full condition of release in their account. Eligible AMP Super Choice members have had the feature automatically added to their account, while eligible MySuper members have the option to add the feature.

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Melinda Howes

AMP research reveals that 4 in 5 Australians aged 65 and over don’t feel prepared for the transition to aged care, while 7 in 10 worry about the cost of care.

The majority of older Australians would prefer to avoid aged care and remain living in the family home, with 3 in 5 saying they would prefer to age in the family home and half preferring to receive care in the home. Further, 3 in 4 expect aged care to diminish their wealth and children’s inheritance, while almost 1 in 3 worry about the burden of aged care cost on their children.

This research shows the challenges faced by the growing number of Australians heading into retirement. Retirees lack the financial confidence to spend in retirement and are living more frugally than they need to, with Treasury’s Retirement Income Review revealing many older Australians are passing away with the bulk of wealth they had at retirement intact^[1].

AMP’s research follows the federal government’s introduction of the new Aged Care Act into Parliament in September, aimed at supporting growing numbers of older Australians choosing to retain their independence and remain in their homes as they age.

Other key findings include:

• 7 in 10 are against moving into a residential aged care facility
• 1 in 2 don’t know what government assistance is available to them for aged care
• Over 8 in 10 are confident their children will make the right decisions on their behalf about aged care, if needed.

The findings are indicative of the questions financial advisers are most often asked from their clients about aged care, including:

• What will it cost to move into an aged care facility and can I afford it?
• I have minimal assets besides the family home. Do I still need to pay the accommodation costs of moving into a residential aged care facility?
• Should I retain the family home (and rent it), or sell it and use the proceeds to pay for the aged care accommodation payment?
• What are the implications of each option for my social security entitlements?
• How do I minimise my aged care fees while optimising my social security entitlement?

Previous Government findings have also shown that older Australians find the aged care system difficult to access and navigate^[2]. By 2035, a total of 1.4 million Australians are expected to stay in their homes as they age2 while the number of Australians aged 85 years and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 2058^[3].

AMP Group Executive, Super and Investments, Melinda Howes said: “These insights bring to light the financial worry and lack of understanding many older Australians have about aged care, including its cost, how they will fund it, and how it interacts with the pension system.

“The Government’s Aged Care reforms are an important step towards helping support the growing number of older Australians choosing to retain their independence, and the financial services industry also needs to do more. It’s critical we continue to work with government and regulators to help take these aged care financial worries off the table for retirees, and allow them, with their families, to focus on physical and emotional wellbeing during this often-challenging phase of life.

“This begins with building financial confidence during the transition into retirement, giving older Australians greater choice and optionality when they reach this critical life stage. That means instilling a peace of mind that their savings and income will last, and understanding the available options for receiving care. This would not only provide comfort in the knowledge that they can remain financially independent as they age, but unlock a better quality of life in the early and active years of retirement.

“More affordable and accessible financial advice is central to building this confidence, and in helping demystify the nuances and complexities of our retirement system, including how the aged care system interacts with the pension and family home.

“The onus is also on the financial services industry to develop new and innovative retirement solutions which provide greater lifetime income certainty and make it easier to downsize or unlock equity from what is most Australians’ largest financial asset – the family home.”

AMP Director of Retirement, Ben Hillier said: “Australia is leading the way in development of new solutions that maximise and provide assurance on lifetime income for retirees. But as this research highlights, our industry must continue to innovate to provide Australian retirees with the financial confidence they’ve worked their lives to achieve.

“That means removing any financial concerns older Australians may have about aged care and providing confidence that they’ll be able to fund the cost of care if needed. This can be achieved through lifetime income solutions that will help more Australians look forward to a better standard of living and a higher rate of ongoing income in retirement.

“It also includes better access to financial advice, improved financial literacy at all ages, and a simplified retirement system. Relocating to an aged care facility, gifting and inheritance are all areas where an adviser can make a meaningful difference to more Australians in and near retirement.”

Six tips to help manage the transition to aged care

1) Early planning: The sooner you start planning for the possibility of aged care and factor it into long-term retirement outcomes the smoother the transition will be.

2) Speak with your family: Discuss the possibility of aged care with your loved ones and likely carers before the need to enter a care facility to help you make an informed decision.

3) Access Government resources: The Government’s My Aged Care website provides valuable information to help support the transition. ASIC’s MoneySmart is also a great resource for help you organise and plan for retirement.

4) Speak to your superannuation provider: They can offer resources which help with your retirement knowledge, including a free retirement health check or intra-fund advice. Having greater control of your finances can give you the confidence that you can afford the cost of your care.

5) Know what charges to expect: some typical costs of moving into an aged care facility include a daily fee for the day-to-day services such as meals and laundry, payments towards your accommodation and an extra fee determined by a means assessment.

6) Increase eligibility for assistance: Eligibility for government assistance in paying aged care costs is means tested, so you can reduce your costs by reducing your assessable assets and income through strategies such as utilising a lifetime income stream.

About the findings

AMP commissioned Dynata in February 2024 to conduct a survey of 2000 Australians aged 50 years and over and under 40 years in relation to their attitudes to retirement, aged care and intergenerational wealth transferral.

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Notes:
[1] Source: Retirement Income Review. Australian Government Treasury, July 2020 .
[2] Source: Once in a generation aged care reforms. The Hon Anika Wells MP. 12 September 2024. . By 2035, a total of 1.4 million Australians are expected to stay in their homes as they age2 while the number of Australians aged 85 years and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 20583
[3] Source: Care, Dignity and Respect: Royal Commission into Aged Care Quality and Safety .

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Ben Hillier

Key points

• Most under 40s haven’t spoken to their parents about wealth transferral
• Under 40s not relying on ‘bank of mum and dad’, despite housing unaffordability fears
• Half of under 40s expect to financially support their parents as they age

Insights revealed from the second phase of AMP’s research uncovering Australians’ attitudes to intergenerational wealth show a clear desire of under 40s to secure their own financial independence.

Under 40s are not relying on the ‘bank of mum and dad’ despite concerns that increasing housing unaffordability will impact their own wealth in retirement and the growing wealth divide between generations as property values appreciate.

Further, the research reveals that half of those under 40 believe they will need to support their parent financially as they age, with children and their parents reluctant to discuss intergenerational wealth matters.

Key findings include:

• Half of those under the age of 40 expect to financially support their parents as they age.
• Only 1 in 5 are relying on financial assistance and inheritance from their parents for their future financial security
• 4 in 5 under 40 haven’t asked their parents for any financial support.
• 3 in 5 under 40 haven’t spoken to their parents about wealth transferral.
• 3 in 5 under 40 believe their generation has it harder financially than their parents did, increasing to 7 in 10 for those under 29.
• 4 in 5 under 40 who currently don’t own a property believe it will be out of reach.
• 4 in 5 under 40 believe that not owning a property will be detrimental to their long-term wealth in retirement.
• 8 in 10 under 40 would consider purchasing a property with a friend or a family member, 4 in 5 for those under 29.
• Under 40s believe home ownership is the main contributor to wealth in retirement (40%), followed by savings (23%) followed by super (18%), followed by investment property (15%), followed by shares (5%).

The findings follow the first phase of AMP’s intergenerational wealth research which shows that retirees want to support their children, but are also concerned about their own financial security and lifestyle.

An estimated $3.5 trillion is set to be transferred by Australians aged 60+ in the next two decades, with 90% of all intergenerational wealth transferral occurring through death inheritance^[1].

We also know that most Australians find our retirement system complex^[2], likely contributing to retirees underspending in retirement, with the Intergenerational Report finding that many draw down at the legislated minimum on their super balance^[3].

AMP Director of Retirement, Ben Hillier said: “This latest research reveals an interesting dynamic within families, including a lack of communication between the generations on wealth matters.

“It’s also evident that while many Australians under 40 are concerned about housing unaffordability and its impact on their long-term wealth and retirement, they are reluctant to ask for financial support from their parents, with many actually believing they will need to financially support their parents as they age.

“It’s worth considering these findings with the knowledge that many Australian retirees are fearful their savings won’t last – a fear which prevents spending and impacts their quality of life. It’s also very possible these concerns are inadvertently conveyed to their children and hinder open dialogue on wealth matters.

“We have a significant opportunity in Australia to help more retirees build their financial confidence, empowering them to fully enjoy their post-working years. This can be achieved through better access to lifetime income solutions and financial advice, improved financial literacy at all ages, and a simplified retirement system.

“Most importantly this confidence could improve their quality of life in retirement, but it could also be a catalyst to open the lines of communication with their children on important wealth matters, such as inheritance and estate planning. It may even empower them to support their children financially, which we know from AMP’s previous research^[4] they’re keen to do.

“Importantly, the sharing of knowledge and insights could help build greater collective financial literacy and confidence within the family unit.”

AMP Bank Group Executive, Sean O’Malley said: “It’s also clear from the research that under 40s are concerned housing unaffordability will impact their long-term wealth – a justifiable concern given home ownership is one of the key pillars for wealth in retirement for most Australians.

“Building the financial confidence of retirees and finding better ways to unlock home equity would also empower more older Australians to support their kids.

“While this needs to be tackled at a macro level by federal and state governments, there are other, more immediate options for younger Australians wishing to purchase their first property. For example, AMP’s research has indicated a strong willingness of younger Australians to consider joint property ownership with family and friends.

“Fractional lenders, such as Bricklet, specialise in offering this service, and can provide an alternative and lower risk means of joining the property ladder.

“We would encourage younger Australians to talk to their bank or broker about the different lending options available to them.”

Other findings from the research include:

• 2 in 5 Australians aged 50 to 58 indicated they don’t have a will in place.
• 9 in 10 Australians under 40 believe owning a property is important for building wealth.
• Of those under 40 who don’t own a property
  • 4 in 5 are concerned home ownership will out of reach
  • 4 in 5 are concerned with will impact their long term wealth.
• Only half of Australians under 40 believe they can afford to buy a property in the same areas where their parents live and where they grew up.
• 4 in 5 under 40 would or have relocated to buy their first home.
• More than 2 in 5 under 40 believe their parents’ property is too large or doesn’t meet their current needs.
• 7 in 10 under 40 want to live in the property they buy.

About the research

AMP commissioned Dynata in February 2024 to conduct a survey of 2000 Australians aged 50 years and over and under 40 years in relation to their attitudes to retirement and intergenerational wealth transferral.

——–

Notes:
[1] Wealth transfers and their economic effects. Australian Government Productivity Commission, 7 December 2021.
[2] AMP commissioned research, released September 2023.
[3] Intergenerational Report 2023, Australia’s Future to 2063, 24 August 2023
[4] https://corporate.amp.com.au/newsroom/2024/june/the-conflicting-priorities-facing-retirees-and-the–never–leave

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Estelle joins AMP from Aware Super, where she was the Actuarial Practice Lead for Member Strategy for almost four years, helping inform Aware’s retirement income strategy, as well as providing internal consulting support to a wide range of business functions including retirement, finance, marketing, digital, advice, defined benefit, and policy.

In this role, Ms Liu designed and developed the algorithm for Aware’s flagship hybrid retirement projection tool and introduced the Retirement Confidence Score risk metric that aims to help nudge members with appropriate retirement decisions.

Estelle Liu’s background spans over a decade of experience in the superannuation sector, leading retirement income research and longevity solutions design for Mine Super and Rice Warner as well as consulting closely with one of Australia’s largest superannuation funds to build its comprehensive retirement outcomes modelling engine and calculators.

As Chair of the Actuaries Institute Australia’s Superannuation Projection and Disclosure Sub-Committee, she has worked closely with ASIC, Treasury and APRA on superannuation projections, dashboard and disclosure-related matters.

Reporting to AMP’s Director for Retirement, Ben Hillier, Ms Liu will lead the development of financial solutions across the business to help more Australians better manage their wealth and retire with confidence. She commences on Monday 22 July.

Ben Hillier, AMP Director, Retirement said: “I’m really pleased to be welcoming Estelle to our team as AMP continues to bolster its retirement capability with a focus on growth and retirement income innovation.

“With nine million Australians expected to retire over the next 40 years, there is a real opportunity for us to provide a unique point of differentiation by investing in our strategy and retirement expertise, as well as expanding the range of market-leading solutions that we have on offer for advisers and our customers.”

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Ben Hillier

New AMP research has found 4 in 5 Australians aged 65 and over believe their children face similar or harder financial challenges than they did growing up, amid rising housing unaffordability and rents.

Despite wanting to support their children, 7 in 10 aged 65 and over said they were unwilling to compromise their retirement lifestyle to provide financial assistance. Retirees also hold a strong attachment to the family home, with a reluctance to downsize to release funds to support their children.

The primary means through which they are willing to support their children is by providing a place to live in the family home. This is leading to more generations living under the one roof, with Melbourne Institute^[1].

This new research highlights the attitudes, behaviours and conflicting priorities impacting the transfer of wealth and financial support from older Australians to their children and grandchildren, with those over 60 set to transfer an estimated $3.5 trillion over the next two decades^[2].

The findings match with Productivity Commission data showing 90% of all intergenerational wealth transfer occurs through death inheritance, typically when children are aged 502.

The most recent national Census also highlights the new financial paradigm facing younger Australians, with 25–39 year-old Baby Boomers in 1991 three times more likely than 25–39 year-old Millennials in 2021 to own their home outright^[3].

Key findings from AMP’s research include:

• 3 in 4 Australians aged 65+ believe it is important to pass wealth onto their children
• 4 in 5 Australians aged 65+ believe their children face harder or similar financial challenges now compared with them at the same age
• 7 in 10 aged 65+ are unlikely to adjust their lifestyles in order to pass wealth onto their children
• 4 in 5 aged 65+ are not prepared to downsize to release funds to their children but close to half of those aged 50+ would consider passing home equity value to their children if they could stay in the family home

AMP Director, Retirement, Ben Hillier said: “As housing unaffordability and cost-of-living pressures rise, Australia’s burgeoning retiree population faces a growing dilemma – how do they help their kids financially, while also fully enjoying their retirement years.

“Unlocking different options for financial support, beyond accommodation, starts with older Australians having greater comfort with their own finances. We know, for example, far too many retirees are unnecessarily fearful their savings won’t last their lifetime.

“Providing retirees with the financial confidence that their savings will last, will not only help them live life to the fullest, but also give greater clarity with how they can help their kids.

“This confidence can be built in a number of ways, including increasing financial literacy and knowledge through education resources and financial advice, and through the use of solutions that provide greater assurance on lifetime income. AMP Limited ABN 49 079 354 519

“Given retirees’ attachment to the family home, it’s also clear that as an industry, we need to explore new ways to help retirees unlock capital from their home, without the need to downsize or compromise their long-term wellbeing”.

Access help through your super fund

Australians can build their financial confidence in retirement by taking advantage of intra-fund advice services which are offered free of charge by most super fund to their members. AMP, for example, has dedicated retirement experts who are fully qualified financial advisers that provide free consultation to its superannuation members on planning for retirement.

Source: AMP commissioned research

About the research

AMP commissioned Dynata in February 2024 to conduct a survey of 2000 Australians aged 50 years and over and 30 years and under in relation to their attitudes to retirement and intergenerational wealth transferral.

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Notes:
[1] Source: More Australian adult children and living with their parents longer. Melbourne Institute, Hilda Survey, research indicating half of Australians aged 18 to 29 are still living at home.
[2] Source: Wealth transfers and their economic effects. Australian Government Productivity Commission, 7 December 2021.
[3] Source: Owning a home has decreased over successive generations. Australian Bureau of Statistics, 20 October 2022 .

The post The conflicting priorities facing retirees and the never-leave-home generations appeared first on AdviserVoice.

Ben Hillier

New research by AMP shows that older Australians are expecting to head into retirement with higher levels of debt, presenting a growing challenge to them achieving financial confidence in later years.

For Australians aged 50 and over AMP’s research found:

• Almost 9 out of 10 believe they will still be paying off a mortgage when they retire.
• 1 in 3 are not confident their nest egg will provide for an adequate lifestyle.
• 3 in 5 believe staying in their family home is more important than a higher income in retirement.
• Over half are prepared to change their lifestyle to save more money in retirement.

With the rising cost of living and inflationary pressures, together with a national housing affordability crisis, many older Australians are facing the reality of missing out on the financial security of owning their home when they retire.

According to the data, fewer than 1 in 10 Australians aged 50 and over expect they will have enough savings for retirement and 1 in 9 expect to have more than $250,000 in unpaid debt when they retire. More than 2 in 5 said they would opt to sell and downsize to reduce their debt, echoing fears and concerns about not being able to afford a comfortable lifestyle in retirement.

Rising household debt a real worry

Australians are living longer and levels of outstanding debt on assets like the family home mean many are facing a looming debt cliff once they hit retirement.

According to ABS data, average household debt levels have quadrupled over the past 20 years for older Australians aged 55 and over, rising from $62,000 in FY03-04 to $242,000 in FY21-22.

Source: ABS^[1], AMP

This increased level of household debt is seeing more Australians sacrifice a better lifestyle to help cope with the rising cost of living and mounting pressures to pay off the mortgage.

AMP Director, Retirement, Ben Hillier said: “For as long as we can remember the Australian dream has been debt-free home ownership, which provides the financial foundation and security for a comfortable retirement.

“While home values and super balances are increasing, research shows that more and more Australians will be retiring with increasing levels of household debt, leaving more retirees exposed to interest rate fluctuations, and presenting an evolving challenge in financial planning for retirement.

“Rising retiree debt needs to be acknowledged as an issue by industry, Government and regulators so that we can work together to provide Australians with greater financial confidence in their retirement.

“Central to this is providing easier access to more affordable financial advice, which, encouragingly, is being addressed by the Quality of Advice Review.

“Industry also needs to innovate to develop solutions which unlock the full value of a retiree’s balance sheet to maximise income, taking into account home equity values, superannuation balance and household debt.”

Ways to learn more about retirement:

• 1) Speak to a financial adviser to help you plan for retirement. You can find an AMP adviser here^[2] or refer to reputable government resources like Money Smart^[3] for more information.
• 2) Read AMP’s Retirement whitepaper: See AMP’s Retire with Confidence whitepaper^[4], which has plenty of insights and strategies for maximising your income in retirement.
• 3) Sign up to our podcast: Our Simplifying Investing podcast series^[5] offers access to two of Australia’s leading economists in AMP’s Dr. Shane Oliver and Diana Mousina, as well as industry experts such as AMP’s director for retirement, Ben Hillier.
• 4) Check out our Insights Hub: You can find valuable information about managing your finances in retirement^[6] and have a read of AMP’s biennial Financial Wellness report, which has some great insights around how to improve your financial wellbeing^[7].

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Notes:
[1] https://www.abs.gov.au/media-centre/media-releases/average-household-debt-grows-73-cent#:~:text=Average%20household%20debt%20grew%20by,Bureau%20of%20Statistics%20(ABS)
[2] https://www.amp.com.au/wps/portal/au/FindAnAdviser
[3] https://moneysmart.gov.au/retirement-income
[4] https://events.amp.com.au/link/id/zzzz64f95f1dee9cb078Pzzzz6459cb6da63ba001/page.html
[5] https://soundcloud.com/simplifyinginvesting/episode-78-addressing-australians-financial-literacy-and-the-gender-literacy-gap
[6] https://www.amp.com.au/insights-hub/retirement
[7] https://www.amp.com.au/financialwellness

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Ben Hillier

AMP’s leading retirement solution, MyNorth Lifetime, has today been recognised globally as the winner of the ‘Pension Fund Design and Reform Award’ at the World Pension Summit held in The Hague in the Netherlands.

Now in its 14^th year, the Excellence and Innovation Awards are an annual celebration of innovation in retirement planning and design, highlighting those that are leading the charge and excelling in terms of their strategy, execution or delivery.

Hosted by ‘Pensions and Investments’, the international awards span three categories: investment, plan design and communication, with this year’s theme being ‘Regenerating Sustainable Outcomes’.

Launched in October last year, MyNorth Lifetime is a multi-award winning retirement solution that offers retirees and those transitioning into retirement the highest level of lifetime income in the market.

Combining the flexibility and control of the account-based pension and the income stability of an annuity, MyNorth Lifetime is already proving popular with advisers and their clients due to the comfort and security it provides for those heading into retirement.

Since launching, it has helped lift income rates by around 50% for those members who are using MyNorth Lifetime, delivering a guaranteed cashflow and longevity protection that is decoupled from the investment experience.

Previously, the majority of these members were drawing legislated minimums from their account-based pensions, and now the majority are drawing above the minimums on their balances which remain in account-based pensions.

On average, they are allocating 50% each to the Lifetime account and the account-based pension. The longevity of income is guaranteed for these members, but the level of income is market-linked, resulting in income rates that are substantially higher than traditional annuities.

MyNorth Lifetime received the Best Fund Innovation Of The Year at the Chant West 2023 Super Fund Awards in May and Canstar’s Innovation Excellence Award in April.

It was also awarded two Plan For Life (PFL) awards at their Longevity Cover Awards for 2022.

A market-first solution, MyNorth Lifetime provides complete investment control, income flexibility and account transparency, there is no need to reserve capital or invest conservatively, and more Australians can enjoy a better life in retirement.

AMP Group Executive, Platforms, Edwina Maloney said: “MyNorth Lifetime is a global pace-setter in retirement income innovation which is improving the quality of life for Australians in their post working years.

“We are working closely with advisers to bring these solutions to market to help benefit our members in retirement.

“Our members who are taking up MyNorth Lifetime are experiencing greater levels of confidence in their retirement and they are significantly increasing their spending because they’ve overcome the pervasive fear of running out.

“We believe this provides a model for a new generation of flexible, transparent and compelling lifetime income solutions that overcome the drawbacks associated with traditional annuities.”

AMP General Manager, Retirement Solutions, Ben Hillier said: “We’re really excited to be recognised on the world stage as a global leader for retirement income innovation with MyNorth Lifetime.

“Today, over 95% of funds in superannuation income streams are in account-based pensions which offer investment choice and flexibility but provide no explicit guarantees regarding income level, volatility or duration.  What that means is all investment and longevity risks are borne by the retirees.

“Managing these risks prompts more than half of retirees to draw only the minimum for their retirement, leading to a lifestyle deficit in retirement. However, the reality is you don’t need to trade-off flexibility, transparency and value in order to receive a lifetime income stream.

“There is a real opportunity to educate more Australians and help ensure we tackle this challenge of underspending so that more people can enjoy their best years in retirement.”

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