Lifetime pensions take up slowed by regulation

22 October 2021
| By Liam Cormican |
expand image

Superannuation funds are avoiding the implementation of lifetime pensions for a variety of reasons, including their tendency to be reactive to regulation change rather than proactive.

Speaking at the Post Retirement Australia conference, Peter Rowe, general manager of Optimum Pensions, said super funds had a massive amount of regulatory change which meant their priorities were always in a state of flux.

“The regulatory change keeps hitting them year after year and I think it’s taken them a while to start actually contemplating what they should do about retirement,” he said.

“But I think that’s now changing as I think the hesitation has always been around other distractions and [retirement] hasn’t reached the top of the list of priorities.”

Another reason for the reluctance in take up, said Rowe, was because many superfunds had been involved in merger discussions that prevented them from introducing a new product.

He said a few funds have said they would wait until the government legislated for lifetime pensions.

“And I think that’s unfortunately a sad thing about the superfunds that legislation has driven this whole industry,” said Rowe.

“Without the compulsion of [superannuation guarantees] most of the industry [wouldn’t] exist – we’d go back to the days where we only have 30% of the population covered and most of that was in the public sector.

“They’ve been conditioned over the years by governments with changing rules to wait to see what the rules will be and I think that’s been one of the biggest impediments.”


Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry



Get rid of the rest of the old guard to clean up the culture, then you might have a chance....

3 days 12 hours ago
Ray Mitchell

The previous directors and managers of both Dixon Advisory and the ultimate holding company Evans and Partners should be...

4 days 1 hour ago
Old Fella

Why would any Licensee invest in educating and training new advisers, when as soon as the handcuffs come off, they will ...

4 days 4 hours ago

Insignia Financial has unveiled a new operating model and executive team, including a new head of advice, while three senior executives are set to depart the licensee....

4 days 14 hours ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

3 weeks 5 days ago

The $280 billion Australian Retirement Trust is the first superannuation fund off the block to report its performance for the 2023-24 financial year....

2 weeks ago