Macquarie Funds Group (MFG) is targeting superannuation funds and wealth managers that are interested in its new lifetime income guarantee solution.
MFG was currently in talks with both large and medium-sized industry superannuation funds, following the launch of its policy which provides investors with a guaranteed minimum level of income for life even if their retirement savings are reduced to $0.
“The medium-sized funds to some extent have some advantages in this space, and part of the reason for that is they have less complex back-end systems and less complex structures that should allow them to move much faster,” MFG longevity solutions head Andrew Robertson told InvestorDaily.
“There are also a number of them that have membership bases that have got higher at retirement balances, which also make this an attractive retirement proposition for them.
“We’ve developed not only the product but the administration systems in the background, so that allows us to present this as a ‘plug and play’ solution to wealth managers.”
Robertson said there were several advantages for advisers and superannuation funds looking at this type of solution.
“This provides them with a flexible way for retirees to address longevity risk, and from their point of view, that then makes a much more enduring long-term relationship with the member or the client because they’ve solved these issues for them.”
MFG plans to roll out more products in the longevity risk sector this year.
“One of the things we’re looking very closely at is structured as a life insurance policy that can be held by trustees of super funds, and obviously self-managed super funds and wholesale super funds are in that bucket as well,” Robertson said.
“We’re looking to make that a nice, low-cost, simple, easy to deal with option.”
