AMP's new MySuper 'lifecycle' investment option

AMP's new MySuper 'lifecycle' investment option tailors its strategy to members' age so even your less engaged employees can enjoy the benefits.

Most employer-sponsored super plans cater for a diverse workforce in terms of age and financial education. With a high proportion of employees remaining in the default option, many employers have been concerned about how to get the best outcome for the majority.

Although a tailored investment solution may be the best option for an individual, based on their circumstances and retirement goals, over half of our members still remain in the default investment option.

Understanding this, AMP's My Super option may be ideal for members who want the hard work taken out of deciding how to invest.

MySuper - a positive catalyst for change

New MySuper investment options for those who haven't made a choice were introduced in January this year as a result of Stronger Super legislation, designed to improve and simplify the customer experience. Commissions for advice were also removed. While this made the industry more transparent, it may make it less likely for the less engaged, particularly younger members, to invest in personal advice and use a tailored investment strategy.

Many superannuation providers focused on delivering a compliant rather than innovative solution in their response to the regulatory changes. But we took a different approach. We embraced the opportunity to build a solution specifically tailored for those members in employer plans who are less engaged than we would all like.

Introducing lifecycle investing

The AMP MySuper option uses a lifecycle investment strategy, which can provide the simplicity of a single investment choice that is actively managed and adapted for their whole superannuation journey.

Our lifecycle options invests in higher growth strategies for younger members who have more time before retirement and can handle more risk. And we limit risk for older members approaching retirement to deliver a more stable investment balance. This allows you as their employer to feel more confident about the outcome for your less engaged employees.

Not all lifecycle funds are created equally

While the majority of super providers have launched a 'balanced' MySuper fund, with a fixed ratio of investment in growth and defensive assets, about 20% of MySuper funds use some form of lifecycle investment strategy.

The basis of lifecycle investing is to deliver higher growth for younger members and then reduce risk for those approaching retirement. The investment approach may vary depending on the following:

  • How actively the asset allocation is managed
  • How actively they manage the underlying assets.
  • How targeted are the investment strategies for different age groups.

AMP took the opportunity to deliver a high quality investment solution so are active on all these fronts, giving us a unique position in the marketplace.

Is it set and forget?

No. We are still spending time to educate members. We have increased our efforts to provide relevant communication at the right points in customer's life journeys. And we have launched new digital tools, like our new mobile app and targeted education modules in My Portfolio, to keep members engaged and help them access their finances.

We feel confident that our MySuper offer provides a great solution for all employees to better own their own tomorrow.

Find out more

To find out more about AMP's MySuper take a look at our website 'What is MySuper' or speak with your AMP Planner or Business Relationship Manager.

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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account. 

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.