High planner enthusiasm for DLAs

There is high appetite for deferred lifetime annuities (DLAs) among retirement planners, with 83 per cent of planners saying they are open to using them, Investment Trends research showed.

The December 2014 Retirement Planner Report showed planners favour DLAs for their features such as flexibility and access.

Although they are not available in Australia yet, the Financial System Inquiry recommended the Government should do away with tax impediments on DLAs, which is part of the Treasury's retirement income stream review.

The survey also showed that of those who are willing to use DLAs, 54 per cent want liquidity access as a feature, while 40 per cent want DLAs to be made available in superannuation.

"To ensure the success of DLA product, providers need to ensure that planners' minimum product feature requirements are met," Investment Trends senior analyst, Recep Peker, said.

The feedback from planners who already use annuities are very positive, with 96 per cent of this segment eager to use DLAs.

The report was based on a survey of 617 planners between October and December last year.

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