The long-awaited retirement solution of Allianz Retire+ has officially launched.
Allianz Retire+ Future Safe provides customers the option to choose fixed rate, market-linked investments and protection options to suit their retirement needs.
Future Safe is a seven-year investment product issued by a life insurance company that gives customers access to share market returns with the certainty of a range of outcomes.
Investments can range from $20,000 to $1.6 million.
Allianz Retire+ Powered by PIMCO head of consultants and research Cassandra Crowe flagged at Financial Standard's Best Practice Forum on Retirement Income last year the benefits of the new product.
Future Safe was launched to meet the needs of retirees by providing access to equity market-like returns and certainty with a range of outcomes, she said.
If the Australian or global equity market was to generate a 20% loss, Future Safe would set up a -10% floor when setting out objectives, Crowe said by way of example. Conversely, there would be a cap on the upside.
Allianz Retire+ chief executive Matthew Rady said the finance industry has an inherent focus on accumulation and compounding wealth.
"Our launch also says that it is time to shift the focus to those entering the decumulation phase of their life. The thinking and design and effort behind the product solution we announce today truly seeks to balance out the natural worries of people in retirement," he said.
Rady added that one of the biggest worries for about a third of households is maintaining their existing lifestyle, while a third anticipate they can only afford the essentials.
"This is unacceptable. Allianz Retire+ has been established to enable every Australian to live their best retirement and have confidence in the future."
PIMCO and Allianz joined forces in May 2018.
The new business, Allianz Retire+ Powered by PIMCO (Allianz Retire+), follows more than two years of product research and development and represents Allianz and PIMCO's first-ever co-branded business venture.