Russell Investment Group has moved to emulate recent US trends by providing a new superannuation product which allows consumers to structure their superannuation on the basis of an intended retirement age.
The new product, known as ‘LifePoints Target Date Portfolios’, allows an investor to decide when they expect to retire and selects a portfolio that closely matches that date.
Explaining the basis for introducing the new product, Russell’s managing director, Australian member services, Heather Dawson said that US research showed most individuals would rather delegate their investment decision to someone else.
“The new LifePoints Target Date Portfolios allow the investor to delegate the initial and ongoing asset allocation decision to investment experts at Russell,” she said.
Dawson said a key feature of the new product was that they were dynamic and would reallocate over time to become conservative as people approach retirement age – something which was critical in keeping investors on track.
She said the new product would be placed in the investment menu of the Russell SuperSolution Master Trust which managed the super for large organisations such as News Limited, George Weston Foods and GE Corporation.
