Lifetime completes capital raising

Retirement Income Group Limited, trading as Lifetime Retirement Income, has completed a $4.9m capital raise, including new investment from private equity investor Oriens Capital.

Monday, September 3rd 2018, 11:47AM

It said it would strengthen Lifetime Retirement Income’s regulatory capital position and support sales and marketing activity as the business grew.

The Lifetime Income Fund was established in 2016 and enables retirees to turn their savings into a regular income that’s insured and guaranteed for life. A combination of basic funds management and insurance principles allows investors to secure a minimum regular income, while still having access to their fund balance at any time.

The product provides peace of mind for retirees by providing a regular top-up to New Zealand Superannuation Payments – for as long as they live.

Lifetime Income is the only licensed provider of variable annuity products in New Zealand. The process of licensing with the Reserve Bank of New Zealand took more than two years to complete.

Lifetime Retirement Income has enjoyed solid interest in the Lifetime Income Fund and holds seminars and promotions around the country to support awareness of the fund.

Former Retirement Commissioner and chair of Retirement Income Group Limited, Diana Crossan, is delighted with the support shown by both existing and new investors through the capital raise.

“Additional capital investment into Lifetime Retirement Income increases our financial strength and enables us to continue growth in the number of New Zealand retirees that receive income payments from Lifetime Income every fortnight.”

Chief executive of Lifetime Retirement Income, Ralph Stewart, began the business in 2013 after seeing the need to provide sustainable income in retirement for the growing number of New Zealand superannuitants.

“Ensuring New Zealand retirees have sufficient income to live right through retirement is a significant challenge. In fact, there is as much risk of underspending as there is of people outliving their savings – either situation has significant consequences. The Lifetime Income Fund removes uncertainty and provides peace of mind for retirees.”

Oriens chief executive James Beale said Lifetime Income was well-positioned to service the retirement income needs of New Zealanders in a product category that was well established offshore.

“The gap between the cost of living in retirement and NZ Super payments remains a much debated social and political issue. The market will enjoy significant growth over the next decade. We estimate more than 400,000 KiwiSaver members with over $36 billion in assets will be transitioning from saving for retirement to spending in retirement. They need education and choice around income in retirement and we believe the Lifetime Income Fund has an important part to play in the overall solution.”

Oriens Capital will provide capital and strategic support to enable Lifetime Retirement Income to build its brand and general product awareness and grow via direct, financial adviser and wholesale distribution channels.

Oriens Capital will be a significant minority investor in Retirement Income Group Limited and will be represented on the board by Beale.

Tags: Lifetime Retirement Income Group