Allianz Retire+ channels super directly to lifetime income

Allianz Retire+ has launched a new direct super pathway to access its guaranteed lifetime income solution for eligible Australians.

Designed for individuals aged 50 to 80, Allianz Guaranteed Income for Life: Super+ (AGILE Super+) allows clients to invest directly using their super money, without requiring a platform, expanding the product to broader adviser and client market.

Unlike platform-based implementation, clients can rollover their super directly into AGILE Super+, providing advisers with a simple and efficient way to access its guaranteed lifetime income solution.

AGILE Super+ can also accept super investments before a client has met a Relevant Condition of Release, allowing advisers and clients to plan and establish a future guaranteed lifetime income strategy ahead of retirement.

Allianz Retire+ chief distribution and marketing officers Catherine van der Veen and Lucy Foster said the launch is in response to growing adviser demand for access to AGILE beyond the existing platform-based offering.

"Demand for AGILE is up approximately 40% on this time a year ago, with levels of interest and inquiry increasing significantly as the market's understanding of AGILE and similar products develops," the pair said.

"There is no doubt that this segment of the market is a game changer for retirees - especially in a time of volatile markets - and that is becoming much more clearly understood and accepted by advisers.

"The introduction of AGILE Super+ is fundamentally an access and advice story. We're enabling a broader range of advisers to incorporate guaranteed lifetime income solutions into retirement strategies, regardless of the platform they use."

Allianz said AGILE Super+ provides advisers with "income bandwidth" by allocating a portion of their clients' retirement savings to a future guaranteed income stream while maintaining flexibility across the remainder of their portfolio creating a future guaranteed income stream which will grow over time before being activated in retirement.

"As the client's broader portfolio evolves through investment returns and ongoing contributions, AGILE can represent a relatively smaller proportion of total assets while potentially contributing a disproportionately larger level of guaranteed income when switched on," van der Veen and Foster said.

"This layered retirement income approach can help clients feel more confident about spending and enjoying their retirement, knowing part of their future income is secure regardless of market conditions."

Another key component from the offering is the automatic inclusion of the Age Pension+ feature upon meeting a Relevant Condition of Release. AGILE Super+ may assist eligible retirees in optimising Age Pension entitlements through favourable assets test treatment, while continuing to benefit from a guaranteed income stream, which can help improve overall retirement income sustainability.

The automatic application of Age Pension+ distinguishes AGILE Super+ from AGILE, where the feature is elective.

van der Veen and Foster also highlighted the offering can help address the common fear of running out of money in retirement, as many retirees tend to spend less than they can afford, despite having accumulated significant retirement savings.

"Guaranteed lifetime income is not just about securing income. It's about providing retirees with the confidence to use the savings they've worked so hard to accumulate," van der Veen and Foster added.

"By creating certainty around future income, advisers can help clients make more informed spending decisions and approach retirement with greater peace of mind.'"

While there are some differences in features, the solution maintains the core AGILE proposition advisers are familiar with, including investment growth potential; guaranteed income for life; and flexible access to money, Allianz Retire+ said.