AMP Chairman Simon McKeon will retire at the company’s AGM next month.

He will be replaced on a temporary basis by board member John Palmer, who is postponing his retirement until a permanent chairman is found.

Mr McKeon says he is disappointed to be stepping down “following a change in my circumstances”.

While he did not elaborate, Mr McKeon, who was the 2011 Australian of the Year, is known to be a long-time sufferer from multiple sclerosis.

Mr Palmer was appointed to the board in July 2007, and recently retired from AMP’s life board after 10 years. He is also Chairman of Rabobank New Zealand.

“I have every confidence in the strategy and management team and believe that AMP is well positioned to grow over the long term,” Mr McKeon said.