AMP launches superannuation feature to boost retirement income

AMP has launched AMP Super Lifetime; a superannuation feature it claims could lift members' retirement incomes by over $100,000 in the first decade post-work.

AMP Super Lifetime runs automatically in the background of a member's super account, creating a 'concessional' balance that grows at the government-set deeming rate of 2.25%, instead of the actual return of the super fund.

At retirement, members can transfer a portion of their super to an AMP Lifetime Pension, which is designed to provide income for life, alongside an AMP Allocated Pension.

AMP said that Centrelink assesses Age Pension eligibility using the lower concessional balance for the portion invested in AMP Lifetime Pension, instead of the full super balance.

This may help retirees qualify for more Age Pension, boosting their income in retirement.

AMP also noted that retirees with increased certainty and financial confidence may be encouraged to draw a higher income from their AMP Allocated Pension, further boosting retirement income and improving quality of life in their earlier active years.

AMP group executive of superannuation and investments Melinda Howes said the feature is a smart and efficient way for members to get more out of their superannuation.

"This is a breakthrough innovation for the superannuation industry and, most importantly, our members - a simple, no-cost feature that can significantly increase retirement income and improve access to the Age Pension. It's designed to quietly work in the background, using government rules to unlock more income when it matters most," Howes said.

Meantime, AMP director of retirement Ben Hillier said for many, AMP Lifetime Super could mean tens of thousands of dollars in extra retirement income compared to a traditional account-based pension.

"It's a highly effective and simple way to improve quality of life in retirement," Hillier said.

AMP Super Lifetime is initially available to members under the age of 58 who've not met a full condition of release in their account.

The feature has been automatically added for eligible AMP Super Choice members, while eligible MySuper members have the option to add it.