Queensland-based industry fund Energy Super has become the latest entity to deliver a post-retirement product to members via a relationship with Mercer.
The fund announced today that its members would soon be able to access a retirement income for life as part of the partnership with Mercer via a new account-based pension investment option called Energy Super LifetimePlus.
The product is being marketed to members as removing uncertainty and allowing them to more easily plan and live the retirement lifestyle they desire but the upside for the fund is that it allows members to keep their super in the fund post their retirement.
Mercer and the Energy Super are describing the new product as combining an investment strategy focussed on capital preservation with a unique longevity-risk pool.
They describe it as delivering three income streams to members including: quarterly investment returns, a half-yearly bonus for as long as members live, and capital returns paid half-yearly after 15 years.
"It is an income for life from an account based pension with no insurance premiums," the promotional material said.
Commenting on the move, Energy Super chief executive, Robyn Petrou said LifetimePlus offered more affordable longevity risk protection compared to traditional annuity products.
"The development of this product with Mercer is the result of more than two years' research and investigation into how we can help members to better protect their financial futures in the face of growing longevity risk," she said