Allianz Retire+ unveils ‘next-generation’ retirement income product

Allianz Retire+ has announced that its new retirement income product, Allianz Guaranteed Income for Life (AGILE), will be available early next month.

According to the firm, AGILE is a “next-generation retirement solution” that provides full advice platform integration and can be embedded within super funds and account-based pensions.

The solution has been designed to enhance the provision of retirement planning for advisers and was developed in consultation with the adviser community as well as Australia’s largest super funds, retirees and the global Allianz network in established retirement markets.

“This process took considerable time, but we believe this product sets a new standard for the industry,” commented Allianz Australia Life Insurance CEO, Adrian Stewart.

“For the first time, a retirement product allows advisers to integrate retirement solutions into their current ecosystem that deliver outcomes with certainty for the entirety of their client’s life.”

Allianz Retire+ noted that it had recognised significant changes within the financial services industry, in particular, the call for greater innovation with retirement income products following on from the retirement income covenant (RIC), which came into effect last year.

“Innovation in retirement products has consistently been deprioritised and surpassed by more urgent issues concerning the industry. That all changed in July last year, following the implementation of the RIC, a bright line was clearly drawn by the government and APRA. The starting gun has been fired,” Mr Stewart said.

“The industry has been put on notice. We need to collaborate, take action and deliver solutions to members and clients or it might just be regulated with mandated outcomes.”

Mr Stewart also highlighted the looming “grey tsunami”, with up to 10 million Australians expected to be in retirement over the next 20 years. The universal problem for those preparing for and during retirement, he said, is the fear of running out of money.

“When we talked to advisers, retirees and super funds, it was unanimous. Retirees need certainty of income and the last thing they need is their income to go down or be volatile in a market drawdown,” he said.

“The time is now for advisers and retirees to consider anchoring their portfolios with a guaranteed income. The markets are highly volatile, inflation is rife and the income profile for retirees can be locked in now, market linking their asset base (up to a maximum return) with downside protection until the income is turned on.”

Along with providing stability to retirees through a guaranteed income for life, Allianz noted that AGILE also provides flexibility by allowing retirees to withdraw their funds at any time.

The firm also noted that it has made significant investments in technology and infrastructure to support a pipeline of innovative products that deliver certainty and flexibility.

“We are deeply committed to protecting Australians’ hard-earned savings and delivering the best solutions for both industry and retirees. We are just getting started,” Mr Stewart concluded.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.