Unlocking a better retirement: AMP’s retirement expert explains how Lifetime Boost can boost your super

We caught up with Estelle Liu, AMP’s Head of Retirement Solutions and one of the brains behind Lifetime solutions, including AMP Super Lifetime Boost and the AMP Lifetime Pension. Estelle breaks down how the average Aussie could pocket an extra $100,000 of income in their first ten years of retirement* with no extra fees or effort – and what it could mean for you.

Can you tell us about your role at AMP and how you came to work on Lifetime?

I’m the Head of Retirement Solutions at AMP. My role involves helping design Lifetime solutions so members can retire with confidence. For me, Lifetime Boost isn’t just a feature. It’s a way to plan early with certainty and enjoy the retirement you’ve worked so hard for.

How does Lifetime Boost actually work?

There are two main ways Lifetime Boost could help increase your retirement income. 

The first is simply turning your savings into more income. When you retire, an AMP Lifetime Pension can convert your retirement savings into lifetime income streams very efficiently by maximising what you get on a year-to-year basis. For example, say you retire at age 67, the Government’s statutory minimum gives people an income of about 5%. Most people spend at the minimum today due to the fear of running out. But an AMP Lifetime Pension gives people about 7.7%, a much higher safe level of spending backed by insured living bonus to ensure your income will never run out.  

The second source of uplift comes from Government Age Pension concessions. For example, there’s a 40% discount for asset tests for any allocation into a Lifetime Pension. This discount grows the earlier you add the Lifetime Boost feature in the accumulation phase. So, for the average Aussie who’s 37, it will grow for about 30 years. Having the Lifetime Boost feature added to your super as early as possible has the potential to improving your Age Pension eligibility to as much as 100% discount on the asset test.

The $100,000 figure has caught a lot of attention. How did you arrive at that?

We modelled it based on the average Aussie from Australian Bureau of Statistics. He’s a single 37-year-old male earning $90,000 a year and has $80,000 in super. So if he owns his own home and decides to join AMP Super at age 37, this unlocks the Lifetime Boost feature. We also modelled another 24 different member scenarios across ages, retirement balances, homeownership, asset outside super and single/couple status to get a holistic assessment. 

The result?

• He could be $100,000 better off in the first 10 years of retirement.¹

• He could qualify for more Age Pension thanks to the growing asset test discount from the moment Lifetime Boost feature is switched on. 

• He has the confidence to spend more freely in retirement.

It's interesting to note our modelling showed an even higher figure for the average Aussie, but we kept it deliberately conservative to ensure the benefit uplift quoted applies broadly. But the big takeaway is that Lifetime Boost can make retirement significantly better for most Australians.

How do you think Lifetime solutions will really help people?

Most Australians stick to the minimum drawdown because they’re afraid of running out. Lifetime helps ease that fear. It gives you permission to spend whether that’s travel, hobbies, or just enjoying everyday life, knowing your money is designed to last.

Are Lifetime solutions meant to replace an account-based pension?

Not at all. Lifetime solutions are just one of the building blocks you can use to create a retirement plan that suits your goals. If you decide it’s not for you at retirement, you don’t have to allocate anything, your outcome will be the same as if you’d never switched it on. But if you want both income and flexibility, you can unlock the powerful combo by split your super between a lifetime pension and an account-based pension (also known as an allocated pension). That way, you get the benefit of higher, steadier income from lifetime, while still keeping some money accessible for things like helping family or covering unexpected expenses.

People often ask, what’s the catch?

There really isn’t one. You can switch Lifetime Boost on while you’re still working and growing your retirement savings at no extra fees and no lock in. Then later, at retirement, you decide whether to put some of your super into an AMP Lifetime Pension. The main trade-off is flexible access: do you want maximum income, or do you want to keep some accessible for unexpected needs like helping family? That’s where balancing a lifetime pension with an account-based pension works well, and where you can unlock the powerful combo by having a bit of both.

What’s one thing you wish people understood better about Lifetime solutions?

A lot of people think it’s only adding value if you live a very long time in retirement. But it’s bigger than that. Another key benefit is confidence. It’s about giving you the freedom to enjoy retirement without constantly second-guessing every dollar and underspend.