How Mercer LifetimePlus works

IMPORTANT NOTICE: FOR FINANCIAL ADVISERS ONLY

Mercer LifetimePlus is an award-winning investment option that provides peace of mind for retiring Australians. Like an annuity, LifetimePlus provides income for life. However unlike an annuity, the income from LifetimePlus increases as clients get older, delivering greatest returns when other assets may be running out.



Three different sources of income

LifetimePlus is the only investment product that provides income for life without compromising on performance. The strength of LifetimePlus comes from its three different sources of distributions.

 

The power of pooling

LifetimePlus uses a simple approach to providing income for life. Each investor is part of a larger pool which generates them income for as long as they live (and remain invested). When an investor leaves, or passes away, they will leave at least some of their investment in the Living Bonus pool. The rest of their money is returned to them / their estate. The money in the Living Bonus pool is paid out to remaining investors.

These are the Living Bonus payments you can see in the chart above, represented in yellow. 

Simple to implement

LifetimePlus is designed to integrate easily with a client’s other investments. Its conservative growth profile means it complements a wide range of overall investment strategies. A retiree would typically invest between 10% and 30% of their pension portfolio in LifetimePlus, thereby having an income generating investment from day one of retirement, continuing for as long as they live.

LifetimePlus also offers clients flexibility to change their investment if their needs change over time. This is because LifetimePlus offers a two-year cooling off period during which their money can be fully withdrawn if needed.
After that LifetimePlus offers access to a large proportion of invested capital for many years.


For more information about how LifetimePlus works and individual suitability, visit Tools & Resources or contact a Mercer consultant using the form below.

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