Oriens Capital invests in Retirement Income Group (trading as Lifetime Retirement Income)

Retirement Income Group, trading as Lifetime Retirement Income, has completed a $4.9m capital raise, including new investment from private equity investor, Oriens Capital. The investment will significantly strengthen Lifetime Retirement Income’s regulatory capital position and support sales and marketing activity as the business continues growth in its Lifetime Income Fund.

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 licenced provider of variable annuity products in New Zealand. The process of licencing with the Reserve Bank of New Zealand took more than two years to complete.

Lifetime Retirement Income has enjoyed solid interest in its Fund, and holds seminars and promotions around the country to support its take-up.

Former Retirement Commissioner and Chair of Retirement Income Group, 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.”

Founder and CEO of Lifetime 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 CEO James Beale believes Lifetime Income is well positioned to service the retirement income needs of New Zealanders in a product category that is 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 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.”

James also commented on the Lifetime Income team, led by Ralph Stewart. “Ralph is passionate about ensuring there are solutions provided to New Zealanders for income in retirement for life. We are excited about joining him and the team on this important journey.”

Oriens Capital will provide capital and strategic support to enable RIG to build its brand and general product awareness and grow via direct, financial advisor and wholesale distribution channels. Oriens Capital will be a significant minority investor in Retirement Income Group and will be represented on the board by its CEO, James Beale. Other directors of Lifetime Income Fund include financial commentator Martin Hawes, and former Minister of Finance, Sir Michael Cullen.

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