12 March 2019
Allianz Retire+ launches its first product to help Australian really retire with confidence
It arrives at a critical time in Australia, where our older people are living longer and are uncertain of their financial future. Approximately 3.8 million people (15% of Australia’s total population) were aged 65 and over in 2017, increasing from 9% in 1977 and 5% in 1927 .
Being older, also means we are spending longer in retirement. What should be a time to relax has for many become a time of stress and concern.
Allianz Retire+ Future Safe was purpose-designed from the point of view of the customer, and not from a top-down, mathematical equation. Exhaustive market research with Australian financial advisers and retirees revealed to us the myriad of challenges facing all retirees.
Our research highlighted that almost half of non-retired Australians consider it unlikely they will have enough money to live comfortably in retirement. The primary concerns about money include a lack of protection, assurance and confidence.
Allianz Retire+ Future Safe aims to allay these concerns - delivering access to growth in retirement savings coupled with protection against investment market volatility. The design and thinking are unprecedented in Australia.
Allianz Retire+ Chief Executive, Matthew Rady, said today’s launch brings a new approach to retirement investing. It introduces the scale and collaboration of two of the world’s leading names in insurance and investment management: Allianz and PIMCO and, it does that out of a genuine concern to make a positive and enduring difference in the lives of Australian retirees.
“We discovered one of the biggest worries for about a third of households is maintaining their existing lifestyle. A third of households expected that in retirement they would only be able to afford the essentials . This is unacceptable. Allianz Retire+ has been established to enable every Australian to live their best retirement and have confidence in the future,” Matt said.
“We are in a unique position to deliver these outcomes. The team we have assembled is thrilled to launch in Australia with an affordable and accessible retirement solution that fills an absolutely necessary gap for retirees.” he said.
“The finance industry has an inherent focus on accumulation and compounding wealth. Our launch also says that it is time to shift the focus to those entering the ‘decumulation’ phase of their life. The thinking and design and effort behind the product solution we announce today truly seeks to balance out the natural worries of people in retirement.
“Issues like the dual demands of capital protection and growth. The worries of retirees, many of whom we believe are currently insufficiently catered for by most of the investment options they have available,” Matt continued.
A little about Allianz Retire+ Future Safe
Each year Allianz Retire+ Future Safe customers select from a choice of fixed rate, marketlinked investments and protection options to suit their needs. Each market-linked option is made up of a ‘Cap’ and a ‘Floor’, allowing customers to decide their range of returns upfront and limit potential losses with inbuilt flexibility.
The product is the first of a new breed of retirement solutions Allianz Retire+ plans to introduce in Australia, seeking to transform how financial advisers and their clients think about the key challenges of retirement.
“Australian retirees are living longer and require a larger nest egg to fund a comfortable retirement. We can see that change is critical if the industry is to truly deliver effective investment strategies that provide for a large percentage of our population. This is an exciting day for change. Rest assured, we are here to make a difference and here to stay.” Matt said.
1. Australian Institute of Health and Welfare - Older Australia at a Glance (2018)
2. ME Bank - ME household financial comfort report, Melbourne (2018)
Madden & Assoc.
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About Allianz Retire+
Allianz Retire+ delivers the next generation of retirement income solutions to the Australian market. Our financial product solutions are designed to simplify the complex financial and emotional challenges that can confront people who are heading into retirement. Allianz Retire+ is a world-first Australian venture combining the scale and expertise of international insurance provider Allianz and global investment expert PIMCO.
Allianz Retire+ is a registered business name of Allianz Australia Life Insurance Limited ABN 27 076 033 782, AFSL 296559 (AA Life). The Future Safe product is issued by AA Life.
The information in this release is not financial advice and does not take into account your individual objectives, financial situation or needs. Before making any investment decisions, you should speak to your adviser and consider your own circumstances.
Prior to making an investment decision, investors should consider the relevant Product Disclosure Statement (PDS) and Policy Document which are available on our website (www.allianzretireplus.com.au).
PIMCO Australia Pty Ltd, ABN 54 084 280 508, AFSL 246862 is not the issuer or promoter of the Future Safe product and therefore is not responsible for the performance of the product. PIMCO Australia Pty Ltd provides investment management and other support services to Allianz Australia Life Insurance Limited. Use of the POWERED BY PIMCO trade mark, or any other use of the PIMCO name, is not a recommendation of any particular security, strategy or investment product.