The size of Australia’s superannuation system makes it the “opportunity of a lifetime” for super funds and life insurers able to offer a “ready for anything” approach, according to DST Systems.
With $2.7 trillion in assets, superannuation in Australia presents a huge opportunity to businesses that offer flexible post-retirement products and improve retirees’ life quality and expectancy.
A recent paper by DST found that only limited attention had been given to this area to date.
As the assets invested in superannuation grow by $100 million a day though, with both the retirement age and the size of mandated contributions set to progressively increase in coming years, providers offering such services have much to gain.
“All players in the super industry can materially and positively change the future, not just for businesses, but for their members and the country as well,” Sam Higgie, DST Systems director product manager said.
The technology, services and consulting company said that products and services would need to show a “ready for anything” flexibility to be successful.
“This type of flexibility will allow product complexities to be managed with innovation and collaboration, a 360-degree end-to-end member experience, with flexible options and extensive analytical capabilities,” DST said.
New research has shown Australians are retiring at their oldest age in over 50 years.
The $300 billion fund has announced the development of a new flexible lifetime income option in partnership with TAL.
As regulators spur funds to focus on Australia’s ageing population and overseas players voice their interests, professionals expect a boost in innovative activity in super.
Over half of Australians hope to live to 100 years, according to MetLife, and 90 per cent believe retirement should be redefined to account for a longer lifespan.
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