The fund announced last week that it has added two Challenger guaranteed income accounts to its range of superannuation products: a lifetime and a fixed-term account.
“We are one of the first super funds to offer these additional options, which is testament to legalsuper being innovative and agile with its product development,” said legalsuper chief executive Andrew Proebstl.
“These new guaranteed income products are also a timely response to recent changes to the age pension and more members looking for certainty of income in retirement.”
The new accounts provide guaranteed income, regardless of the performance of investments. The income can be paid monthly, quarterly, half-yearly or annually. The accounts are available to members aged 60 and over, with super balances of $20,000 and above.
“These guaranteed income accounts are designed to cater to, in particular, those members who want increased certainty of income in retirement,” said Mr Proebstl.
“Also, relative to many other super funds, our members have higher balances and higher levels of financial literacy.
“As our members’ balances continue to grow due to contributions and strong investment performance, we expect member interest in guaranteed income accounts to increase.”
He added that ‘layered income solutions’ are growing in popularity among legalsuper members, involving the allocation of income from several sources.
“The benefits of this strategy include that it offers choice of term, payment frequency, return of capital and inflation protection, thereby better managing financial affairs and lifestyle needs with greater certainty, flexibility and confidence,” said Mr Proebstl.