The findings of the research are significant, given that a central issue in retirement planning is longevity risk, or the fear of outliving savings, and demonstrate how investment-linked lifetime income products can help by providing income guaranteed for life that can grow with investment performance.
It also found that these products improved access to the age pension, with modelling showing some households could see their first-year age pension rise by up to 68 per cent when a lifetime income product was part of their portfolio.
The independent research looked at LifeIncome, a product available through Generation Life, and found that growth risk profiles experienced improvement when such a product was included in portfolios, with confidence in retirement strategy scores improving by at least 10 per cent.
Patrick Clarke, general manager of retirement solutions at Generation Life, said the research underscores how an investment-linked lifetime income product can give retirees both confidence and choice.
“By combining income guaranteed for life with access to growth assets, a product like LifeIncome can help advisers deliver better outcomes for their clients. Retirees can enjoy today, while knowing their future needs can be covered – it’s about replacing fear with confidence,” Clarke said.
Melanie Dunn, principal at Accurium, said the research gave advisers clear insights into how lifetime income products like LifeIncome can fit within a retirement strategy.
“By modelling real-life scenarios, we aimed to provide advisers with a practical framework to help clients balance flexibility, sustainability, and retirement confidence,” she said.
“Our goal is to ensure advisers are better equipped to guide their clients through one of the most complex financial challenges they will ever face – turning savings into a reliable income for life.”
The findings come as government policy reforms, such as the Best Practice Principles for the Retirement Income Covenant, place greater focus on high-quality, sustainable retirement income strategies.
Advisers are also increasingly seeking solutions that can extend beyond traditional account-based pensions.
Clarke added: “As Australians have been living longer, the demand for retirement solutions that balance certainty will only continue to grow. Investment-linked lifetime income products are uniquely positioned to address this need, offering advisers a powerful tool that can improve client outcomes and strengthen their value proposition in a competitive advice landscape.”
