AMP has unveiled a new retirement product aimed at helping Australian retirees increase their retirement income while potentially boosting their eligibility for Centrelink age pension payments.
The new program, called AMP Lifetime Super Boost, is being described as a market-first initiative and will be available to all AMP Super members. The product has been designed to support retirees in converting their superannuation savings into a more sustainable lifetime income stream.
Under the new arrangement, AMP creates what it calls a “concessional” balance in the background. This balance is linked to the government-set deeming rate, which currently sits at 2.75 per cent. Over time, this concessional balance is generally lower than the actual value of a retiree’s superannuation investment.
The key advantage of this approach comes during Centrelink assessments. When retirees apply for the age pension, Centrelink assesses the lower concessional balance rather than the full market value of the invested amount in the AMP Lifetime Retirement Income account. As a result, some retirees may qualify for higher pension payments or increased benefits.
AMP said the structure could provide retirees with greater financial flexibility throughout retirement. Pensioners may also be able to withdraw more money from their Flexible Retirement Income account while still maintaining favourable Centrelink treatment.
The launch comes as many Australians approach retirement with concerns about rising living costs, inflation, and the challenge of making superannuation savings last for life. Financial experts have increasingly highlighted the importance of products that combine stable income with government pension support.
AMP’s Lifetime Super Boost is designed to address those concerns by offering a blend of lifetime income security and potential pension advantages. The company believes the product could appeal to retirees seeking greater certainty without sacrificing access to their retirement savings.
The initiative also reflects a broader trend within Australia’s superannuation industry, where providers are focusing on retirement income strategies rather than simply growing account balances during working years.
With more Australians entering retirement over the next decade, products like AMP Lifetime Super Boost may play an increasingly important role in helping retirees manage longevity risk and maximise available government support.
