AMP offers North platform discounts
Fresh off the back of its North platform being a major driver for cashflows, AMP has now announced cost reductions for customers using the platform.
The company announced today that it was reducing the cost of the North Guarantee, making it cheaper for customers seeking to access the capital guaranteed elements of the platform offer.
Commenting on the move, AMP's Director, Superannuation and Investment Platforms, Patricia Montague said increases in long term interest rates meant AMP was able to offer new customers the guarantee more cheaply in circumstances where economic and market factors such as long term interest rates and market volatility were used to determine the price of the guarantee.
"Life expectancy is on the rise and there is a real risk that a market downturn could wipe out the savings of retirees or those close to retirement, who will also have a longer retirement to fund. The effect of sequencing risk can be damaging," she said.
AMP has outlined the extent of its cost reductions in tables covering the various investment options with the discounts ranging as high as 0.75 per cent.
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