Super funds introduce new lifetime income products to transform retirement spending in Australia
Consensus Summary
Two major Australian news outlets, THEAGE and SMH, report on a significant shift in how Australians approaching retirement can manage their superannuation savings. Starting May 23, 2026, super funds like AMP, Colonial First State, UniSuper, Hostplus, and others are rolling out new lifetime income products designed to provide guaranteed, flexible retirement income for life. These products, which can be activated years before retirement, reduce Centrelink-assessed assets by up to 40%, potentially unlocking higher age pension payments. AMP’s product, for example, allows members to start lowering their Centrelink-assessed balance immediately, while other funds like UniSuper and Hostplus offer CPI-indexed or investment-linked options. The products aim to address the fear of outliving savings by combining guaranteed income with market-linked bonuses and flexibility, making them accessible through digital advice or one-off adviser consultations. Both articles emphasize that these changes are part of a broader government push for super funds to provide more retirement solutions, benefiting those with assets between $321,500 and $1.5 million, who may otherwise miss out on full age pension entitlements.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Colonial First State announced an expansion of retirement solutions integrating Challenger, BlackRock, and Generation Life into a single platform for advisers and members, with lifetime income solutions accessible via super fund or adviser platform.
- AMP launched a fully branded, direct-to-member lifetime retirement income product on May 23, 2026, called AMP Super Lifetime, which can be activated years before retirement to lower Centrelink-assessed assets.
- UniSuper offers both a CPI-indexed lifetime income product and Challenger’s Lifetime Income solution, accessible through advisers and digital advice platforms.
- Hostplus offers a CPIplus product, a limited CPI-plus income option for pension members.
- MLC launched Retirement Boost for advisers and plans to introduce a direct-to-member solution later in 2026.
- AustralianSuper, NGS, and Brighter Super announced plans to launch lifetime income products in 2026 alongside digital advice capabilities.
- ART, Australia’s second-largest super fund, has had a lifetime pension available for some time but does not widely promote it.
- Lifetime income products reduce Centrelink-assessed assets by 40% (60% of the amount counted for 5 years or until age 85, then 30%).
- A homeowner couple can have up to $1,085,000 in combined assessable assets and still receive a part age pension, with thresholds starting at $481,500 for full pension loss.
- Lifetime income products are designed to provide guaranteed income for life, market-linked bonuses, flexibility to access capital, and death benefits.
- Two types of lifetime income products exist: CPI-indexed (fixed income rising with inflation) and investment-linked (base income plus performance bonuses with downside protection).
- AMP data shows members using lifetime income products spend 60% more in retirement than those without, due to increased financial confidence.
Points of Difference
Details reported by only one source:
- Bec Wilson is the author of *How to Have an Epic Retirement* and the newly released book (title not specified in the article).
- Wilson writes a weekly newsletter and hosts a podcast, with advice given in the article being general in nature and not intended to influence investment decisions.
- The article mentions Wilson’s email newsletter and podcast as additional resources for retirement advice.
Contradictions
Conflicting information between sources:
- No contradictions found between the two sources.
Source Articles
The super shake-up that could change how you spend in retirement
This week, two announcements signal a shift that is putting lifetime income products within reach of many more Australians.
The super shake-up that could change how you spend in retirement
This week, two announcements signal a shift that is putting lifetime income products within reach of many more Australians.