Global consulting leader Mercer, a wholly owned subsidiary of Marsh & McLennan Companies, has announced its award winning group self annuitisation (GSA) longevity solution, Mercer LifetimePlus®, has been enhanced, making the product more attractive, simpler and easier to access for super funds, advisers and retired Australians.
Ben Walsh, Mercer’s Managing Director & Pacific Leader said “We’re very proud of what we’ve achieved with LifetimePlus. It’s a game changer – a first of its kind product that offers Australians the opportunity for a retirement income for life.”
It’s also a product that Mercer has continued to invest in and enhance. “We’ve adopted a human centred design approach to develop the key features of our new retail version and we’re gaining real traction in the market. LifetimePlus is available on OneVue, HUB24 and Mason Stevens platforms, and will shortly be available on Macquarie Wrap and other major retail platforms.”
Walsh also noted that Mercer’s new design aligns well with Treasury’s guidelines outlined in the recent CIPR discussion paper. “We support the Government’s view that more emphasis needs to be on the post retirement phase of superannuation and we believe LifetimePlus is poised to provide a longevity protection role in many MyRetirement products.”
Dr David Knox, Senior Partner at Mercer explained the key changes to the product. “Three key areas have been updated in the new version – underlying investments, availability and the free-look period. The underlying investment now incorporates 35% growth assets rather than being fully defensive. We’ve simplified the design so that it can reside on retail platforms, side by side with other investments, and we’ve extended the free look period, where there is no withdrawal penalty, from 30 days to two years.”
“These three design changes really improve the value proposition of LifetimePlus to the retiree.” said Knox. “Firstly, the revised investment strategy means that LifetimePlus provides great income from day one - irrespective of any longevity aspect. Secondly, investors are protected from longevity risk, and with 44% of men and 55% of women expected to live past 90 that’s a good thing. Thirdly, returns are strong, particularly in the twilight years, because it’s the pool of investors that provides the longevity protection; there are no shareholders to pay and there’s no counterparty risk.”
LifetimePlus was reviewed positively by Lonsec who gave it an APPROVED* rating in January 2017. Mercer is working with its existing clients to ensure a smooth transfer to the new version of LifetimePlus and realise the additional benefits.
For more information visit www.lifetimeplus.com.au or contact the LifetimePlus team on 1800 870 678.
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and careers of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 43 countries and the firm operates in over 140 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 annual revenue of $13 billion and 60,000 colleagues worldwide, 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.
*The Lonsec Rating (assigned January 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold the financial product and you should seek independent financial advice before investing in this financial product. The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the financial product using comprehensive and objective criteria.
For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings