1 00:00:00,440 --> 00:00:03,480 Speaker 1: Welcome to Fear and Greed Sunday feature. I'm Michael Thompson. 2 00:00:03,800 --> 00:00:05,800 Speaker 1: With the Olympics in full swing and after a pretty 3 00:00:05,800 --> 00:00:08,840 Speaker 1: spectacular week for Australia in the pool, it's only fair 4 00:00:08,880 --> 00:00:12,560 Speaker 1: that we feature an interview with one of Australia's greatest Olympians, 5 00:00:12,600 --> 00:00:16,040 Speaker 1: Grand Hackett. He spoke to Sean Alma in February of 6 00:00:16,120 --> 00:00:19,639 Speaker 1: last year about everything from Olympic gold through to his 7 00:00:19,720 --> 00:00:23,240 Speaker 1: post swimming career in business, and it's very open about 8 00:00:23,239 --> 00:00:25,959 Speaker 1: the challenges that he's had to overcome along the way. 9 00:00:26,400 --> 00:00:29,040 Speaker 1: This is a terrific chat. I really hope you enjoy it. 10 00:00:35,000 --> 00:00:37,760 Speaker 2: Welcome to the Fear and Greed Daily Interview. I'm sure Alma, 11 00:00:38,159 --> 00:00:42,480 Speaker 2: my guest today is one of Australia's greatest Olympians. Since 12 00:00:42,520 --> 00:00:45,960 Speaker 2: retiring from swimming, Grand Hackett has built an impressive career 13 00:00:46,000 --> 00:00:49,880 Speaker 2: in business and finance, including at Westpac and BT Financial Group. 14 00:00:50,080 --> 00:00:53,720 Speaker 2: He's now the CEO of Generation Life, a business focusing 15 00:00:53,840 --> 00:00:56,720 Speaker 2: on investment bonds. On to talk to him today about 16 00:00:56,720 --> 00:00:59,960 Speaker 2: investment bonds, about the superannuation sector, about the changes need 17 00:01:00,560 --> 00:01:03,760 Speaker 2: so that the industry remains fit for purpose, and how 18 00:01:03,840 --> 00:01:07,240 Speaker 2: his success at the highest level of competitive sport prepared 19 00:01:07,319 --> 00:01:10,440 Speaker 2: him for the business. Well plenty to cover there. Remember 20 00:01:10,560 --> 00:01:13,560 Speaker 2: this discussion is general in nature. Any discussion of investment 21 00:01:13,560 --> 00:01:16,800 Speaker 2: products is for educational purpose only and doesn't take into 22 00:01:16,880 --> 00:01:20,360 Speaker 2: account your personal circumstances. You should always see professional advice 23 00:01:20,400 --> 00:01:24,120 Speaker 2: before making investment decisions. Grant Hackett, oam welcome to Fear 24 00:01:24,120 --> 00:01:24,479 Speaker 2: and Greed. 25 00:01:24,880 --> 00:01:26,559 Speaker 3: Thanks very much for having me on Sean. 26 00:01:27,040 --> 00:01:29,559 Speaker 2: So you've held world records in one Olympic goal captain 27 00:01:29,560 --> 00:01:33,440 Speaker 2: the Australian swimming team. Why do you go from that 28 00:01:33,760 --> 00:01:36,680 Speaker 2: to business? Because there's not actually a lot of sports 29 00:01:37,240 --> 00:01:41,240 Speaker 2: stars that end up successful in business. 30 00:01:41,280 --> 00:01:43,520 Speaker 3: It's really interesting. It's actually something that I think I've 31 00:01:43,560 --> 00:01:45,880 Speaker 3: been interested in just as long as swimming. So I 32 00:01:45,920 --> 00:01:49,360 Speaker 3: always love trading shares. I was always interested in markets, 33 00:01:49,360 --> 00:01:52,680 Speaker 3: anything commerce related, even when I was swimming. I was 34 00:01:52,880 --> 00:01:55,640 Speaker 3: heavily involved in several different investments along the way. So 35 00:01:56,160 --> 00:01:59,240 Speaker 3: for me, the transition into finance felt very very natural. 36 00:01:59,280 --> 00:02:01,920 Speaker 3: In fact, any many years before my career ended, I 37 00:02:01,920 --> 00:02:04,520 Speaker 3: actually sat down with Rob Kom who's now the chairman 38 00:02:04,560 --> 00:02:06,440 Speaker 3: of our group. Here I listed and to the Generation 39 00:02:06,520 --> 00:02:10,160 Speaker 3: Development Group and also spoke to a couple of other 40 00:02:10,240 --> 00:02:13,120 Speaker 3: senior leaders within finance about well, what should I be studying, 41 00:02:13,120 --> 00:02:15,840 Speaker 3: what should I be doing now? Preparing myself after sport 42 00:02:15,919 --> 00:02:17,800 Speaker 3: to make sure I can make that transition as smooth 43 00:02:17,800 --> 00:02:21,240 Speaker 3: as possible. So yeah, just always a field that I loved, 44 00:02:21,280 --> 00:02:23,480 Speaker 3: I was very interested in, and yeah, sitting in a 45 00:02:23,480 --> 00:02:26,440 Speaker 3: position today that I absolutely love and what we're doing 46 00:02:26,480 --> 00:02:29,560 Speaker 3: for all of our customers and our investors is terrific. 47 00:02:29,600 --> 00:02:31,400 Speaker 3: So yeah, sort of getting as similar buzz as I 48 00:02:31,440 --> 00:02:33,720 Speaker 3: wasn't swimming, but yeah, very very different environments. 49 00:02:34,240 --> 00:02:37,079 Speaker 2: How firstly, I mean, well done jumping onto Rob Coomb's 50 00:02:37,040 --> 00:02:40,200 Speaker 2: shirt tail because he's been very successful in finance and 51 00:02:40,600 --> 00:02:43,280 Speaker 2: very giving author to many other people in the industry. 52 00:02:44,000 --> 00:02:46,640 Speaker 2: How hard was it to transition? And of course you 53 00:02:46,639 --> 00:02:50,040 Speaker 2: went from a very high profile job to I think 54 00:02:50,240 --> 00:02:51,639 Speaker 2: I'm going to get this wrong problem. But was it 55 00:02:51,680 --> 00:02:53,760 Speaker 2: Westpack was your first high profile business job. 56 00:02:54,000 --> 00:02:56,040 Speaker 3: Yeah, that's right and everything. 57 00:02:55,760 --> 00:02:58,120 Speaker 2: That goes with it because obviously, well not obviously you 58 00:02:58,160 --> 00:03:00,720 Speaker 2: had personal challenges, as we all do, but yours were 59 00:03:00,760 --> 00:03:04,440 Speaker 2: played out in the public spotlight. How hard was that 60 00:03:04,480 --> 00:03:06,680 Speaker 2: to go from one career to the other when everyone 61 00:03:06,800 --> 00:03:07,240 Speaker 2: was watching. 62 00:03:07,639 --> 00:03:10,080 Speaker 3: Oh, it's very difficult in the sense that you have 63 00:03:10,120 --> 00:03:12,480 Speaker 3: this massive loss of identity. You go from being a 64 00:03:12,560 --> 00:03:15,200 Speaker 3: sports person and almost the global CEO what you do 65 00:03:15,360 --> 00:03:18,440 Speaker 3: to going to Westpac on Monday morning and not being 66 00:03:18,440 --> 00:03:21,919 Speaker 3: the best at the table. So it's a very humbling experience. 67 00:03:21,960 --> 00:03:24,359 Speaker 3: But I just worked out, if I roll up my sleeves, 68 00:03:24,440 --> 00:03:26,400 Speaker 3: if I actually take the lessons that I took early 69 00:03:26,440 --> 00:03:28,840 Speaker 3: in sport, just around my goal setting, my focus, making 70 00:03:28,880 --> 00:03:31,280 Speaker 3: sure that I had those kind of short term goals 71 00:03:31,320 --> 00:03:33,160 Speaker 3: that felt like little wins along the way, you would 72 00:03:33,160 --> 00:03:35,320 Speaker 3: get to a point that you'd feel really satisfied and 73 00:03:35,400 --> 00:03:37,880 Speaker 3: you know you're kind of carving out a career outside 74 00:03:37,880 --> 00:03:40,280 Speaker 3: of sport for yourself. So I very much took that tack. 75 00:03:40,640 --> 00:03:42,920 Speaker 3: I think, you know, going through personal challenges, you know, 76 00:03:43,160 --> 00:03:45,560 Speaker 3: public divorce and all those sorts of things along the way, 77 00:03:45,960 --> 00:03:47,600 Speaker 3: they are things that you don't want to go through. 78 00:03:47,640 --> 00:03:50,080 Speaker 3: There are things that you don't expect to gather so 79 00:03:50,160 --> 00:03:52,520 Speaker 3: much interest in your personal life as you're an athlete. 80 00:03:52,720 --> 00:03:55,440 Speaker 3: I never anticipated anything like that, but it almost becomes 81 00:03:55,480 --> 00:03:58,160 Speaker 3: bigger news and what you achieved in sports. But I 82 00:03:58,240 --> 00:04:00,640 Speaker 3: learned so many great lessons along the way. I don't 83 00:04:00,640 --> 00:04:02,000 Speaker 3: want to have to go through a lot of that stuff. 84 00:04:02,040 --> 00:04:03,600 Speaker 3: Again that I went through many years ago. But I 85 00:04:03,680 --> 00:04:05,600 Speaker 3: learned so many great lessons that I think have made 86 00:04:05,640 --> 00:04:08,000 Speaker 3: me a better leader in business. I think it's made 87 00:04:08,040 --> 00:04:10,600 Speaker 3: me a better partner, a better dad. So I'm thankful 88 00:04:10,640 --> 00:04:12,080 Speaker 3: for a lot of those lessons that I had along 89 00:04:12,120 --> 00:04:14,200 Speaker 3: the way, and I think it makes me better at 90 00:04:14,240 --> 00:04:16,600 Speaker 3: what I do today. And certainly a lot of those 91 00:04:16,600 --> 00:04:19,560 Speaker 3: things are quite humbling experiences, you can imagine, because being 92 00:04:19,600 --> 00:04:22,760 Speaker 3: so public, they're ultimately amplified a lot more so you 93 00:04:22,839 --> 00:04:24,839 Speaker 3: really are tested as an individual. 94 00:04:25,200 --> 00:04:27,080 Speaker 2: Tell us about Generation Life what you do. 95 00:04:27,839 --> 00:04:30,480 Speaker 3: So Generation Life is a life company. 96 00:04:30,440 --> 00:04:32,359 Speaker 2: With in life insurance life insurance. 97 00:04:32,440 --> 00:04:35,400 Speaker 3: Yes, that's correct. So we've got two core products that 98 00:04:35,440 --> 00:04:37,880 Speaker 3: we sell. Ones called an investment bond, which is the 99 00:04:37,880 --> 00:04:42,360 Speaker 3: most tax effective vehicle after tax paying vehicle outside of superannuation, 100 00:04:42,520 --> 00:04:44,720 Speaker 3: so with a maximum tax rate of thirty percent off 101 00:04:44,720 --> 00:04:46,640 Speaker 3: and the tax you pay is much much lower than that. 102 00:04:47,240 --> 00:04:48,800 Speaker 3: And then on the other side of the table, we've 103 00:04:48,839 --> 00:04:51,160 Speaker 3: got a lifetime annuity. But we were really the first 104 00:04:51,160 --> 00:04:53,880 Speaker 3: of its kind investment linked lifetime annuity where you can 105 00:04:53,960 --> 00:04:56,320 Speaker 3: choose your own investment products are the same as your 106 00:04:56,320 --> 00:04:59,600 Speaker 3: superannuation or your account based pension and have the flexibility 107 00:04:59,600 --> 00:05:01,640 Speaker 3: to be able to switching between which we launched in 108 00:05:02,000 --> 00:05:04,800 Speaker 3: March of last year. So two core products with a 109 00:05:04,800 --> 00:05:07,120 Speaker 3: market leader and investment bonds. We currently take fifty two 110 00:05:07,160 --> 00:05:09,919 Speaker 3: percent of all market inflows at the moment, and the 111 00:05:09,920 --> 00:05:12,039 Speaker 3: business has grown materially over the past few years. We 112 00:05:12,120 --> 00:05:13,919 Speaker 3: used to do about one hundred and tow one hundred 113 00:05:13,920 --> 00:05:15,840 Speaker 3: and thirty million dollars worth of inflows just four or 114 00:05:15,880 --> 00:05:18,840 Speaker 3: five years ago, where we did over six hundred million 115 00:05:18,920 --> 00:05:21,680 Speaker 3: last year of inflow. So the business has grown quite materially. 116 00:05:21,720 --> 00:05:24,360 Speaker 3: And to your point, Sean, having a leader like Rob 117 00:05:24,440 --> 00:05:26,800 Speaker 3: kerm At at the top of this business is full 118 00:05:26,800 --> 00:05:29,880 Speaker 3: of integrity and high value and performance has certainly helped 119 00:05:29,960 --> 00:05:32,240 Speaker 3: lift us as a team and grow this business materially. 120 00:05:32,640 --> 00:05:35,120 Speaker 2: Okay. I presume higher interest rates would also help out 121 00:05:35,120 --> 00:05:37,960 Speaker 2: too when you're trying to sell investment bonds or innuities. 122 00:05:38,080 --> 00:05:41,440 Speaker 2: I know one of your competitors, Challenger in the annuity spaces. 123 00:05:41,600 --> 00:05:43,520 Speaker 2: I mean, their result for the last half year was 124 00:05:43,600 --> 00:05:46,440 Speaker 2: very strong in the back of sales of innuity. Presumably 125 00:05:46,600 --> 00:05:47,479 Speaker 2: higher rates helped. 126 00:05:48,839 --> 00:05:51,200 Speaker 3: It's interesting for us in terms of our products. So 127 00:05:51,240 --> 00:05:53,520 Speaker 3: we've got our products that are linked to fixed interest 128 00:05:53,720 --> 00:05:56,080 Speaker 3: you know, sort of returns, which obviously that's where our 129 00:05:56,120 --> 00:05:59,240 Speaker 3: interest rates help. So certainly for people wanting to take 130 00:05:59,279 --> 00:06:02,040 Speaker 3: a more conservative of approach and their asset allocation and 131 00:06:02,040 --> 00:06:04,479 Speaker 3: be a little bit more defensive, that's great if you 132 00:06:04,480 --> 00:06:07,200 Speaker 3: don't like the volatility of markets. But on the other side, 133 00:06:07,440 --> 00:06:09,520 Speaker 3: we give the full range of choice. You can have 134 00:06:09,560 --> 00:06:13,760 Speaker 3: anything from full growth products to international equities, through to 135 00:06:13,800 --> 00:06:16,799 Speaker 3: Australian equities, through to fixed interests, through to cash. However 136 00:06:16,800 --> 00:06:18,719 Speaker 3: you want to have that asset allocation, you can do 137 00:06:18,800 --> 00:06:20,760 Speaker 3: that on our investment menu, and you can do that 138 00:06:20,800 --> 00:06:24,200 Speaker 3: on both products, whether it's investment bonds or lifetime annuities. 139 00:06:24,240 --> 00:06:26,520 Speaker 3: It's really one of our clear points of differentiation as 140 00:06:26,520 --> 00:06:29,239 Speaker 3: affirm is that not only do we give investment choice, 141 00:06:29,240 --> 00:06:31,040 Speaker 3: but we give the flexibility of change, which is a 142 00:06:31,040 --> 00:06:34,600 Speaker 3: little bit different to I guess challenges traditional lifetime annuities. 143 00:06:34,600 --> 00:06:38,040 Speaker 3: Aid's some outstanding results that were announced just last week, 144 00:06:38,080 --> 00:06:40,760 Speaker 3: and they've done a phenomenal job in terms of paving 145 00:06:40,760 --> 00:06:43,000 Speaker 3: the way and educating financial advisors and a lot of 146 00:06:43,040 --> 00:06:45,680 Speaker 3: their clients on how innuities works in your overall I 147 00:06:45,720 --> 00:06:48,600 Speaker 3: guess investment portfolio to generate a return and cover off 148 00:06:48,600 --> 00:06:51,720 Speaker 3: longevity and sequency risk, and we've certainly added a new 149 00:06:51,720 --> 00:06:53,720 Speaker 3: dimension to that as a firm in terms of our 150 00:06:53,760 --> 00:06:56,160 Speaker 3: investment link to lifetime innuity. But at the end of 151 00:06:56,200 --> 00:07:00,040 Speaker 3: the day, as a life company, life insurance company, and 152 00:07:00,120 --> 00:07:02,200 Speaker 3: what we do is where you sit here strategically and 153 00:07:02,240 --> 00:07:05,440 Speaker 3: we try and develop products where people are going to 154 00:07:05,440 --> 00:07:07,839 Speaker 3: obviously be able to get the best returns but the 155 00:07:07,839 --> 00:07:10,640 Speaker 3: most flexibility, so they've got that choice. And a lot 156 00:07:10,640 --> 00:07:13,920 Speaker 3: of our inflows come through financial advisors. We work very 157 00:07:13,920 --> 00:07:16,720 Speaker 3: closely with educating them and educating the market on how 158 00:07:16,760 --> 00:07:19,200 Speaker 3: our products actually work and where they fit into the 159 00:07:19,240 --> 00:07:20,400 Speaker 3: overall scheme of things. 160 00:07:20,920 --> 00:07:24,720 Speaker 2: Stay with me, Grant, we'll be back in a minute. 161 00:07:29,200 --> 00:07:32,360 Speaker 2: I guess this morning is Olympian Grand Hackett Om, chief 162 00:07:32,400 --> 00:07:37,200 Speaker 2: executive of Generation Life. Okay, this week, there's been plenty 163 00:07:37,240 --> 00:07:39,400 Speaker 2: of talk about the future of super and what you're 164 00:07:39,480 --> 00:07:43,520 Speaker 2: talking about fits into that very neatly. The whole idea 165 00:07:43,520 --> 00:07:47,080 Speaker 2: that the government could intervene to legislate to say superannuation 166 00:07:47,240 --> 00:07:50,800 Speaker 2: has a specific purpose. And I know that the pratas 167 00:07:50,960 --> 00:07:53,160 Speaker 2: talked about public housing things like that, but he also 168 00:07:53,160 --> 00:07:56,920 Speaker 2: talked about sustainability and potentially I suppose what he's hinting 169 00:07:56,960 --> 00:08:02,000 Speaker 2: at is changing tax breaks for richer superennu ones. Where 170 00:08:02,040 --> 00:08:04,000 Speaker 2: do you think our sector is up to? Super has 171 00:08:04,040 --> 00:08:06,800 Speaker 2: worked incredibly well since it was introduced, right, does is 172 00:08:06,840 --> 00:08:07,880 Speaker 2: it time for change? 173 00:08:08,680 --> 00:08:10,040 Speaker 3: I think, you know, we have to say with our 174 00:08:10,080 --> 00:08:12,320 Speaker 3: super system, we've been the envy of the rest of 175 00:08:12,360 --> 00:08:14,040 Speaker 3: the world in terms of what we've been able to 176 00:08:14,560 --> 00:08:18,640 Speaker 3: accumulate in retirement savings for the average Australian. What's really 177 00:08:18,640 --> 00:08:21,960 Speaker 3: interesting when you hear the commentary from Jim Chalmers is that, 178 00:08:22,200 --> 00:08:24,200 Speaker 3: you know, to preserve savings I think has been the 179 00:08:24,280 --> 00:08:26,840 Speaker 3: key word that he's kind of been articulating out in 180 00:08:26,880 --> 00:08:30,480 Speaker 3: the public domain now and look, are they going to 181 00:08:30,520 --> 00:08:32,960 Speaker 3: be changes in super I feel like that's pretty unequivocal, 182 00:08:33,040 --> 00:08:35,600 Speaker 3: But really, when you reflect on it, that's nothing new. 183 00:08:35,720 --> 00:08:40,239 Speaker 3: We saw the Coalition government back in twenty seventeen legislate 184 00:08:40,480 --> 00:08:43,319 Speaker 3: the caps and superannuations. So of course it started out 185 00:08:43,320 --> 00:08:45,320 Speaker 3: with that one point six million dollar cap, now that's 186 00:08:45,320 --> 00:08:49,960 Speaker 3: one point seven. There was the contributions cap, concessional, nonconcessional, 187 00:08:50,320 --> 00:08:53,520 Speaker 3: and then the various other changes that obviously filtered through 188 00:08:53,520 --> 00:08:55,520 Speaker 3: as part of that. So the narrative of change when 189 00:08:55,520 --> 00:08:58,480 Speaker 3: it comes to Super is pretty consistent, and I think 190 00:08:58,520 --> 00:09:01,200 Speaker 3: this government is obviously taking that to the next level 191 00:09:01,200 --> 00:09:04,559 Speaker 3: and saying, well, how much is enough inside your superinnuation 192 00:09:04,760 --> 00:09:09,079 Speaker 3: to satisfy your living requirements in retirement and make sure 193 00:09:09,120 --> 00:09:11,880 Speaker 3: that that's comfortable. So I think we're going to see 194 00:09:11,880 --> 00:09:15,040 Speaker 3: some changes to what extend. We're all unsure where we're 195 00:09:15,080 --> 00:09:18,440 Speaker 3: constantly hearing the narrative around the five million dollar threshold 196 00:09:18,480 --> 00:09:20,640 Speaker 3: as a maximum you're going to have inside super. But 197 00:09:21,120 --> 00:09:22,600 Speaker 3: you know, we'll just have to wait and see what 198 00:09:22,679 --> 00:09:24,959 Speaker 3: Jim Chalmer's and you know that the rest of the 199 00:09:25,040 --> 00:09:27,800 Speaker 3: Labor government have coming up for us in this May budget. 200 00:09:28,480 --> 00:09:32,079 Speaker 2: What about financial advisors? Here on Fear and Greed, we're 201 00:09:32,120 --> 00:09:35,280 Speaker 2: great fans of financial advisors, And I mean I know 202 00:09:35,360 --> 00:09:37,800 Speaker 2: a lot about business just because I'm a journalist, not 203 00:09:37,800 --> 00:09:40,120 Speaker 2: because I'm into it. I'm sorry, I don't know what 204 00:09:40,160 --> 00:09:42,440 Speaker 2: you know obviously, Grant, but you know, just watching it, 205 00:09:42,520 --> 00:09:43,959 Speaker 2: I know a lot about it. Yet I would never 206 00:09:44,040 --> 00:09:46,600 Speaker 2: ever make an investment without thinking about a financial advisor, 207 00:09:46,880 --> 00:09:49,160 Speaker 2: or a big investment without thinking about a financial advisor. 208 00:09:49,600 --> 00:09:52,960 Speaker 2: How do we make financial advice more affordable for the 209 00:09:53,000 --> 00:09:53,920 Speaker 2: general population. 210 00:09:54,520 --> 00:09:56,800 Speaker 3: Well, I think the quality of advice review is a 211 00:09:56,880 --> 00:09:59,960 Speaker 3: start of that journey because it's absolutely critical that the 212 00:10:00,040 --> 00:10:03,440 Speaker 3: mums and dads of Australia actually have financial advice, particularly 213 00:10:03,840 --> 00:10:06,640 Speaker 3: when it comes to decumulation when they're in the retirement phase. 214 00:10:06,679 --> 00:10:09,120 Speaker 3: I mean, accumulation is difficult enough. I mean you've got 215 00:10:09,120 --> 00:10:11,880 Speaker 3: your mortgage, you've got your private school fees if you will, 216 00:10:12,280 --> 00:10:15,760 Speaker 3: You've obviously got saving up for retirement and making sure 217 00:10:15,800 --> 00:10:18,520 Speaker 3: that you adequately ensure it along the way just in 218 00:10:18,559 --> 00:10:21,160 Speaker 3: case something unforeseen happens. So there's all this complexity, but 219 00:10:21,280 --> 00:10:25,320 Speaker 3: really the complexity is more amplified when it comes to decumulation, 220 00:10:25,440 --> 00:10:28,160 Speaker 3: and that's because you're obviously going into retirement. You've got 221 00:10:28,200 --> 00:10:30,320 Speaker 3: this large pool of money. You think how long is 222 00:10:30,360 --> 00:10:32,600 Speaker 3: this going to last for? And then you've got all 223 00:10:32,600 --> 00:10:35,320 Speaker 3: the tax considerations around that, the legacy and a state 224 00:10:35,360 --> 00:10:37,280 Speaker 3: planning that you want to leave either to your children 225 00:10:37,400 --> 00:10:39,839 Speaker 3: or to your grandchildren. You want to make sure that 226 00:10:39,880 --> 00:10:42,560 Speaker 3: you're generating enough income to live comfortably, go on that 227 00:10:42,600 --> 00:10:44,719 Speaker 3: holiday and do all the things that you need to do. 228 00:10:44,760 --> 00:10:46,000 Speaker 3: But at the end of the day, you don't know 229 00:10:46,040 --> 00:10:48,400 Speaker 3: how long you're going to live either. So from a 230 00:10:48,480 --> 00:10:51,559 Speaker 3: generation life point of view, we really look at retirement 231 00:10:51,600 --> 00:10:54,599 Speaker 3: as it's a multifacet and it takes multiple products and 232 00:10:54,679 --> 00:10:58,440 Speaker 3: great financial advice to achieve your own personal outcomes around that. 233 00:10:58,600 --> 00:11:01,640 Speaker 3: So we consider for things absolutely critical as part of 234 00:11:01,640 --> 00:11:04,240 Speaker 3: that phase of life. And one's your account based pension 235 00:11:04,280 --> 00:11:06,680 Speaker 3: and making sure that you receive appropriate advice around that, 236 00:11:06,760 --> 00:11:09,480 Speaker 3: and that's obviously your access to capital. It's then looking 237 00:11:09,480 --> 00:11:12,360 Speaker 3: at well, what's my lifetime annuity, what sort of risk 238 00:11:12,360 --> 00:11:15,040 Speaker 3: profile should be attached to my lifetime annuity that's going 239 00:11:15,080 --> 00:11:17,600 Speaker 3: to cover off my longevity in my sequency risk? How 240 00:11:17,600 --> 00:11:20,720 Speaker 3: does that help me access more of my government entitlements 241 00:11:20,720 --> 00:11:22,240 Speaker 3: such as your age pension. And then you've got to 242 00:11:22,280 --> 00:11:24,520 Speaker 3: look at what are my non superassets also doing for 243 00:11:24,600 --> 00:11:27,240 Speaker 3: me as well? And you need great financial advice to 244 00:11:27,360 --> 00:11:32,640 Speaker 3: understand how decumulation works. Maximize and get those emotive objectives 245 00:11:32,679 --> 00:11:34,600 Speaker 3: and the way you want to live and the goals 246 00:11:34,600 --> 00:11:36,480 Speaker 3: that you have and the aspirations that you have in 247 00:11:36,600 --> 00:11:38,959 Speaker 3: retirement ticked off, and make sure that you've got the 248 00:11:39,040 --> 00:11:41,360 Speaker 3: right product mix to be able to satisfy that at 249 00:11:41,360 --> 00:11:44,840 Speaker 3: the same time. So financial advice is absolutely critical to 250 00:11:44,880 --> 00:11:45,680 Speaker 3: achieve all of that. 251 00:11:46,160 --> 00:11:49,880 Speaker 2: What about you talked about decumulation and particularly if you're 252 00:11:50,080 --> 00:11:53,000 Speaker 2: an annuity provider. One of the things about annuities which 253 00:11:53,040 --> 00:11:55,560 Speaker 2: people dislike is the fact that they may not have 254 00:11:55,600 --> 00:11:59,480 Speaker 2: as much to leave their children at end of life. Now, 255 00:11:59,559 --> 00:12:02,280 Speaker 2: I'm not convinced that people should leave anything to their kids. 256 00:12:02,880 --> 00:12:06,360 Speaker 2: Maybe it's personal, but the argument that we actually need 257 00:12:06,400 --> 00:12:08,679 Speaker 2: to do a better job spending our money in that 258 00:12:08,760 --> 00:12:10,640 Speaker 2: decumulation stage, well. 259 00:12:10,720 --> 00:12:12,120 Speaker 3: It's quite funny. You look at a lot of the 260 00:12:12,160 --> 00:12:14,360 Speaker 3: research and actually the kids don't want it. They would 261 00:12:14,360 --> 00:12:17,080 Speaker 3: prefer to see their parents have a great retirement. For one, 262 00:12:17,120 --> 00:12:18,640 Speaker 3: I'm in that bucket. I would love to see my 263 00:12:18,720 --> 00:12:22,440 Speaker 3: parents absolutely maximize their retirement. And it's quite funny because 264 00:12:22,440 --> 00:12:24,600 Speaker 3: when people, you know, at age, whether it's age sixty 265 00:12:24,679 --> 00:12:27,000 Speaker 3: or sixty five, or whenever they enter retire and dial 266 00:12:27,040 --> 00:12:30,480 Speaker 3: down their working hours or stop working completely, they're faced 267 00:12:30,480 --> 00:12:33,439 Speaker 3: with this huge dilemma. On one hand, they go, I've 268 00:12:33,440 --> 00:12:36,280 Speaker 3: got this big pool of money, you know, from my 269 00:12:36,320 --> 00:12:39,880 Speaker 3: superannuation that I've saved over forty years of working. That's 270 00:12:39,880 --> 00:12:41,280 Speaker 3: going to last me the rest of my life. But 271 00:12:41,320 --> 00:12:43,360 Speaker 3: I don't know when that is. But right now, in 272 00:12:43,400 --> 00:12:45,920 Speaker 3: the first half of retirement is actually when you're physically 273 00:12:46,000 --> 00:12:48,160 Speaker 3: able to really enjoy retirement. It's when you can go 274 00:12:48,200 --> 00:12:49,960 Speaker 3: out and you know, do the holidays and do all 275 00:12:49,960 --> 00:12:51,280 Speaker 3: the things that you wanted to do to tick off 276 00:12:51,320 --> 00:12:53,439 Speaker 3: the bucket list. And the back half of retirement you 277 00:12:53,480 --> 00:12:55,280 Speaker 3: want to know that you've got enough there to satisfy 278 00:12:55,280 --> 00:12:57,480 Speaker 3: any health issues or anything else that you want to 279 00:12:57,520 --> 00:13:00,000 Speaker 3: achieve through that part of it, but you can't really 280 00:13:00,120 --> 00:13:02,440 Speaker 3: spend it there. And all the research so that people 281 00:13:02,600 --> 00:13:05,640 Speaker 3: materially spend a lot less money, particularly when they hit 282 00:13:05,640 --> 00:13:07,680 Speaker 3: their late seventies, but really when they hit their eighties, 283 00:13:08,280 --> 00:13:10,920 Speaker 3: they basically spend a lot less in relative terms. So 284 00:13:11,440 --> 00:13:13,320 Speaker 3: you know, from that point of view when you get 285 00:13:13,320 --> 00:13:17,200 Speaker 3: to retirement, having a lifetime annuity is important because it 286 00:13:17,360 --> 00:13:19,640 Speaker 3: just safeguards you that you know you're going to be 287 00:13:19,640 --> 00:13:21,679 Speaker 3: able to cover off longevity risks, that you know you've 288 00:13:21,720 --> 00:13:24,440 Speaker 3: got this consistent income stream. You know you're maximizing your 289 00:13:24,440 --> 00:13:27,040 Speaker 3: age pension at the same time. But also a lot 290 00:13:27,040 --> 00:13:29,960 Speaker 3: of these products, including ours, also have a death benefit 291 00:13:29,960 --> 00:13:32,040 Speaker 3: available to them, so you're handing over a lump sum 292 00:13:32,120 --> 00:13:36,280 Speaker 3: of capital for exchange for a lifetime innuity stream. But 293 00:13:36,360 --> 00:13:39,320 Speaker 3: if you were to pass away earlier than anticipated, say 294 00:13:39,320 --> 00:13:42,360 Speaker 3: before life expectancy, you're most likely going to receive a 295 00:13:42,400 --> 00:13:44,280 Speaker 3: death benefit that will go to your estates. So a 296 00:13:44,280 --> 00:13:47,520 Speaker 3: lot of these products have a lot of these concerns addressed, 297 00:13:47,520 --> 00:13:49,719 Speaker 3: but at the end of the day, it's about maximizing 298 00:13:49,760 --> 00:13:52,840 Speaker 3: income and retirement so you can actually enjoy retirement. And 299 00:13:52,920 --> 00:13:54,760 Speaker 3: you know, there's this phrase that we've gone out to 300 00:13:54,800 --> 00:13:58,079 Speaker 3: the market quite heavily with called regret risk. Going into 301 00:13:58,160 --> 00:14:00,760 Speaker 3: retirement and living off the pain off the wall because 302 00:14:00,800 --> 00:14:02,480 Speaker 3: you're so worried about how long you're going to live 303 00:14:02,520 --> 00:14:05,000 Speaker 3: and how long that money is going to last you. Obviously, 304 00:14:05,080 --> 00:14:08,640 Speaker 3: volatility and financial markets is always a concern and falling 305 00:14:08,640 --> 00:14:10,640 Speaker 3: off a cliff like a GFC, so there's all this 306 00:14:10,800 --> 00:14:13,880 Speaker 3: anxiety and stress around around retirement so you don't spend. 307 00:14:14,320 --> 00:14:16,160 Speaker 3: And then people get to the back half of retirement 308 00:14:16,200 --> 00:14:18,280 Speaker 3: and they're like, oh, my goodness, I've actually saved during 309 00:14:18,320 --> 00:14:21,640 Speaker 3: my retirement, but now I can't spend it because I've physically, 310 00:14:21,760 --> 00:14:24,600 Speaker 3: so to speak, depreciated too much and my health is 311 00:14:24,640 --> 00:14:26,320 Speaker 3: not good enough for me to be able to enjoy it. 312 00:14:26,360 --> 00:14:28,760 Speaker 3: And that's where regret risk kicks in, and that's something 313 00:14:28,800 --> 00:14:31,880 Speaker 3: that we're trying to help financial advisors and their clients solve. 314 00:14:32,400 --> 00:14:35,760 Speaker 2: You are clearly an enthusiast for Generation Life. Grant, what 315 00:14:35,840 --> 00:14:38,400 Speaker 2: do you prefer Gold Medals or Generation Life. 316 00:14:38,920 --> 00:14:41,720 Speaker 3: I much prefer this now, to be totally honest. I'm 317 00:14:41,760 --> 00:14:45,160 Speaker 3: equally as passionate about you know, finance and all the 318 00:14:45,160 --> 00:14:47,640 Speaker 3: financial products that we have here at Generation Life are 319 00:14:47,640 --> 00:14:50,520 Speaker 3: more broadly in the industry. So yeah, I'm not sure 320 00:14:50,560 --> 00:14:52,280 Speaker 3: why I get such a kick out of it, but 321 00:14:52,360 --> 00:14:55,360 Speaker 3: I certainly wake up in the morning, you know, enjoying 322 00:14:55,400 --> 00:14:57,360 Speaker 3: this every bit as much as actually more so than 323 00:14:57,600 --> 00:14:59,920 Speaker 3: doing those laps. I enjoyed the racing more in swimming. 324 00:14:59,600 --> 00:15:02,760 Speaker 2: But the yeah, no surprise there, Grant, thank you very 325 00:15:02,800 --> 00:15:04,320 Speaker 2: much for talking to Fear and Greed. 326 00:15:04,440 --> 00:15:06,040 Speaker 3: No worries, thanks for having me on, Sean. 327 00:15:06,480 --> 00:15:10,400 Speaker 2: That was Grand Hackett, oam Chief executive of Generation Life. 328 00:15:10,400 --> 00:15:12,480 Speaker 2: This is the Fear and Green Daily Interview. Remember this 329 00:15:12,560 --> 00:15:15,080 Speaker 2: information is general in nature and you should see professional 330 00:15:15,080 --> 00:15:18,480 Speaker 2: advice before making any investment decisions. Join us every morning 331 00:15:18,480 --> 00:15:20,680 Speaker 2: for the full episode of Fear and Greed, Australia's most 332 00:15:20,720 --> 00:15:23,920 Speaker 2: popular business podcast. I'm Sean Aelma Enjoy your day.