by Susan Edmunds
The organisation has been holding roadshows for advisers around the country.
It announced on Friday that it had received its licence from the Reserve Bank, which allows it to offer a variable annuity product in New Zealand.
Chief operating officer Rhys Gwyilym said Lifetime set a target of 100 advisers signing agreements to become business partners before Christmas.
“We are now at 90-odd with more in the post every day,” he said.
“In the New Year we will be campaigning again and aim to get a good proportion of the AFA community as business partners. So far the response has been very positive, advisers immediately see the need for the product for their clients, they also understand where Lifetime fits into their portfolios.”
Managing director Raplh Stewart said the New Zealand adviser community was in the early stages of understanding the Lifetime product and guaranteed annuities in general.
But he said there would be growing demand from retirees who needed help managing their money.
“Retirees have sophisticated needs, forecasting how much to draw their capital down by is not easy. Estimating mortality is harder. Retirees from 65 will live for at least 25 years more and have different spending patterns over this time," he said.
"Get it wrong and retirees may be denied a better retirement income in their early retirement in favour of excess cash in later retirement and vice versa. The point being the retirement opportunity is a really significant advice opportunity, we are just part of the solution and are naturally keen to see the advice industry grow in its sophistication towards the retirement sector.”
Lifetime offers tax-paid lifetime income rates, fortnightly or monthly of:
Age 65 - 69 5.00% pa
Age 70 - 74 5.50% pa
Age 75 - 79 6.00% pa
Age 80 - 85 6.50% pa
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