Broadening retirement products a must: Challenger
Challenger has welcomed the Federal Government's statement that it would set out specific policy to widen the range of retirement income products, and was also progressing work on comprehensive income products for retirement (CIPR).
In a speech to the Committee for Economic Development of Australia (CEDA) last week, Assistant Treasurer, Kelly O'Dwyer said it would soon announce the results of the retirement income streams review, which was part of the Government's Financial System Program in response to recommendations from the Financial System Inquiry (FSI).
Challenger's chief executive officer, Brian Benari, said: "The ageing of Australia's population is one of the great economic and social challenges of our time. We welcome the Assistant Treasurer's statement that the government will shortly announce specific policy to broaden the range of retirement income products for Australia's 4.5 million retirees".
Benari also urged the Government to develop new products like deferred lifetime annuities to help retirees avert the risk of outliving their savings.
"They are an important component of superannuation funds developing CIPRs as outlined by the Financial System Inquiry," he said.
The Government supported recommendations made by the FSI for superannuation fund trustees to enable pre-selection of a CIPR for retirees.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
