Opportunity for Superannuation Funds

Australian Retirement Landscape

Opportunity for Superannuation Funds

Recent legislation changes by the Australian Government have removed barriers to innovative retirement income products and paved the way for an increased quality of retirement.

Setting the Scene – Australian Retirement Landscape

Australian retirees are ready for new solutions to longevity risk other than those offered currently in the market. However conventional lifetime annuity products offer only modest annuity payments and are subject to additional costs, such as those related to the death of a member and spouse.

The opportunity and challenge for super funds

The key need for retirees is to confidently provide for their desired standard of living while managing the risks involved in their choice of retirement income stream products.

The time is right for superannuation fund trustees and executives to take this issue seriously by allocating resources to rapidly adapt their offerings to meet the best interest of their retired members.

 We believe the market for lifetime income streams in retirees’ portfolios will grow strongly due to the efficiency and effectiveness of the new breed of products. 

Lifetime income streams are the only product to provide longevity (and thus income or lifestyle) protection as well as peace of mind. There is an increased realisation that life expectations are understated AND have been increasing relatively rapidly in historical terms.

Optimum Pensions’ new Real Lifetime Pension may be delivered by Super Funds to their members and will deliver:

A flexible retirement income solution that can address the best interests for retirees

The ability to retain and grow funds under management

A fully insured low risk white label product

We believe Australian retirees have a need for:

Income that increases with inflation

Access to cash – for emergencies and holidays

Death benefit – in order to protect their dependents after the last death of a retiree and their spouse.

With support from the Australian Government, the future landscape for retirement income products is now set to develop.

This will see retirees planning to receive an income that can be a combination of:

An Account Based Pension – which provides access to cash and a death benefit

An Immediate lifetime pension

A deferred lifetime pension – which can provide income for the remainder of a person’s lifetime after the deferred period plus death benefit during the deferred period.

The Aged Pension

Ask us how we can help your fund to develop a retirement income solution for your members.
Contact us or call 1300 103 904

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