Deutsche Bank's superannuation and insurance division is tapping further into the retirement market, developing a strategy that looks at retirement investment risks.
"The essence behind our strategy is that it will give people access to market upside while protecting them from downside risk," Deutsche Bank vice president Mattias Soderberg said.
The firm was currently speaking with superannuation funds about the strategy, Soderberg said.
"Our strategy is flexible. We do not offer cookie-cutter solutions, so each strategy will suit the needs of a super fund," he said.
The type of product Deutsche Bank is looking to develop includes an eight-year time horizon.
A portion of a person's initial investment in the product will be used to generate income through an inflation-linked income stream.
The remaining portion will be used to provide savings that are guaranteed to increase with the consumer price index.
Investors would have access to a risk-controlled investment approach, Soderberg said.
This will provide them with the option of scaling back their exposure to the equity market when market volatility is high. When market volatility falls, people will have the option to invest more in equities.
The strategy could replicate the balanced fund options currently offered by superannuation funds, Soderberg said.
Deutsche Bank vice president Zac Roberts said the retirement products currently available would not meet the needs of retirees in the future.
"Around $250 billion will be needed to fund the retirement needs of people over the next five years," Roberts said.
"Yet many products today do not offer income security and protection against the falls in asset prices."
