Retirement products need lift to better fit system

SPAA/smsf-sector/SMSF/smsf-professionals/self-managed-superannuation-funds/smsf-trustees/risk-management/SMSFs/

23 July 2014
| By Jason |
image
image image
expand image

The Australian retirement system is working well with self-managed superannuation funds (SMSF) being a crucial part but further work needs to be done to develop other retirement income products to the same level according the SMSF Professionals' Association of Australia (SPAA).

In an address at its Technical Conference in Sydney yesterday SPAA Technical & Policy senior manager Jordan George stated the Financial System Inquiry and Government Pension Review identified that the retirement phase of superannuation was underdeveloped and did not match retirees' risk management needs.

He stated this assessment was of the current state of retirement income products and that SPAA had agreed with the FSI on this assessment but claimed the SMSF sector was faring better than the FSI assessment.

"It is important that the FSI's first consideration is the overall framework of our retirement system rather than just a focus on products"

"In this respect SPAA contends the SMSF sector is demonstrating just how well the Australian retirement system is working and meeting Government objectives by successfully providing income streams to retirees and is leading the industry in doing so."

Jordan stated that about 35 per cent of SMSF trustees are already in pension phase and 64 per cent of retirement phase assets are held by SMSFs and thus the long term adoption of appropriate policy was of importance to SPAA.

He also said the FSI and pension review were opportunities to open up the availability of other relevant retirement income products which should focus on flexible, principles-based approaches and not compel people to adopt defined strategies.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

1 month 1 week ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 months 1 week ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

2 months 2 weeks ago

ASIC has canceled the AFSL of Sydney-based asset consultant and research firm....

1 week 5 days ago

The Reserve Bank of Australia has announced its latest interest rate decision following this week's monetary policy meeting....

3 weeks ago

A former financial adviser who stole $4.4 million from his family and friends to feed gambling debts has been permanently banned by ASIC....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
moneymanagement logo