The ground-breaking retirement investment option, Mercer LifetimePlus®, which changed Australia’s retirement income market when launched in late 2014, has been named Best Innovative Retirement Product at Money Magazine’s 2016 Best of the Best awards.
Until very recently, Australian superannuation members have been let down by a lack of choice for products that pay an income in retirement for the rest of their lives, according to Mercer. This award recognises that Mercer’s new solution is more cost-effective, innovative, and accessible than anything else available to Australian retirees.
Mercer LifetimePlus® is an investment option that forms part of an account-based pension, paying members an income for the rest of their lives. It is a longevity pool where the risk of outliving savings is shared among other retirees, and with no third-party shareholder and no insurance premiums. That is, all profits go to the participants.
Dr David Knox, Senior Partner and key architect of Mercer LifetimePlus, said, “Australians desperately needed more options that ensure they will receive an income for life, not just until they are 85 or 90 years old. This recognition from Money Magazine will ensure more people are aware of our solution, which means more people are aware of how they can have a better standard of living in retirement".
“We know many Australians will outlive their retirement savings by at least five years. Fifty-four per cent of us expect to have less money than we need for the lifestyle we desire in retirement. With around 1000 Australians moving into retirement every business day, the development of products such as Mercer LifetimePlus, which provide an income for as long as we live, is badly needed.
‘‘Mercer LifetimePlus is different to annuities, which provide a guaranteed income in return for an upfront investment, but they’re expensive, because the life insurance companies’ shareholders need to be paid for providing the capital to support those guarantees.
“For years, the superannuation industry has grappled with how to offer members simple, affordable and flexible longevity risk protection. The Financial System Inquiry reiterated this threat, calling the lack of effective longevity risk management a major weakness of Australia’s retirement income system.
“With actuarial, investment, legal, financial advice and superannuation experts all within the one business, Mercer is in a unique position to meet this challenge. This award is a testament to the business-wide commitment to innovation that led to the development of LifetimePlus.
The Money Magazine Best of the Best awards are based on a comprehensive analysis of thousands of financial products, services and investments from hundreds of financial institutions.
This is the fourth honour received by LifetimePlus in 2015, following awards for innovation from CANSTAR, Chant West and Conexus.
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s more than 20,000 employees are based in more than 40 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With 57,000 employees worldwide and annual revenue exceeding $13 billion, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com.au Follow Mercer on Twitter @MercerAu