AMP is launching a new retirement program designed to help Australian retirees convert their superannuation savings into a reliable “lifetime income” stream.
The new initiative, called Lifetime Retirement Income, will become available to all AMP Super members and is being described as a first-of-its-kind offering in the Australian market.
The program is expected to officially launch on Monday and aims to provide retirees with greater financial certainty during retirement.
How the Lifetime Retirement Income Program Works
Under the new system, retirees can transfer part of their superannuation savings into a dedicated AMP Lifetime Retirement Income account.
The program creates a concessional balance behind the scenes, which uses the Australian government’s deeming rate — currently set at 3.25 per cent. Over time, this concessional balance is generally lower than the actual super balance.
When Centrelink assesses retirees for the Age Pension, the lower concessional amount may be considered instead of the full investment balance. This could potentially help pensioners qualify for larger pension payments.
At the same time, retirees may also be able to withdraw more money through AMP’s Flexible Retirement Income account.
Rising Retirement Anxiety Among Australians
AMP says many Australians approaching retirement are experiencing increasing financial stress and uncertainty.
According to the company’s findings:
- 54 per cent of Australians aged between 58 and 60 frequently feel stressed or overwhelmed about retirement.
- Half of Australians aged 61 to 65 report similar concerns.
Many retirees remain unsure whether they have saved enough money or how long their retirement funds will last.
AMP Says Superannuation Should Provide Real Income
Julie Slapp, AMP’s Director of Growth and Customer Solutions, said Australia already has one of the world’s strongest superannuation systems.
However, she explained that many Australians still struggle to confidently convert their retirement savings into usable income.
She stated that the new offering aims to provide:
- Guaranteed income for life
- Potentially higher retirement income
- Financial guidance for better retirement decisions
Ms Slapp also emphasized that superannuation was never intended to remain simply “a balance on a screen” but should actively support retirees throughout their lives.
Aged Care Costs Becoming a Major Concern
AMP’s research also highlighted growing concerns about aged care affordability among older Australians.
The company found that:
- Seven out of 10 Australians over the age of 65 worry about the cost of aged care.
- The average waiting period for government aged care support is currently around 12 months.
AMP believes eligible retirees receiving high-level in-home care support could increase their income by approximately 20 per cent over two years while potentially avoiding lengthy waiting periods.
Pressure on Australia’s Health and Aged Care Systems
The issue of aged care support has become increasingly important across Australia, particularly in states such as New South Wales and Queensland.
Public hospitals are reportedly facing bed shortages because many elderly and NDIS patients remain in hospital while waiting for aged care services and support packages.
Ryan Park recently stated that around 1,200 hospital beds across NSW were occupied by aged care or NDIS patients waiting for support services.
According to him, this situation is equivalent to the capacity of two large and busy hospitals in Sydney.
Albanese Government Planning Aged Care Reforms
The Australian Government has pledged to reform the aged care system while also pursuing significant changes to the National Disability Insurance Scheme (NDIS).
These reforms are expected to address support delays, hospital bed blockages, and financial challenges faced by older Australians.
Conclusion
AMP’s new Lifetime Retirement Income program reflects a growing effort to provide Australians with more stable and practical retirement solutions.
By allowing retirees to convert part of their superannuation into ongoing income while potentially improving Age Pension eligibility, the initiative could offer greater financial confidence during retirement.
At the same time, the broader challenges surrounding aged care affordability, hospital bed shortages, and retirement anxiety continue to place pressure on both retirees and government systems.
As Australia’s population ages, financial security and aged care support are likely to remain major national priorities.
FAQs
What is AMP’s Lifetime Retirement Income program?
It is a retirement product that allows AMP Super members to convert part of their superannuation into a lifelong income stream.
How can the program help retirees receive more pension payments?
The program uses a concessional balance based on the government deeming rate, which may improve Age Pension eligibility during Centrelink assessments.
What concerns do Australian retirees currently face?
Many retirees worry about financial stress, insufficient retirement savings, and the rising cost of aged care.
What is the current government deeming rate?
The deeming rate used in the program is currently 3.25 per cent.
Why are aged care patients causing hospital bed shortages?
Many elderly and NDIS patients remain in hospitals while waiting for government aged care support and services.