Australian Catholic Super launches longevity strategy

Australian Catholic Superannuation has launched its RetireSmart pension in response to financial risks associated with longevity.

The retirement income solution is automated and works by investing a member's account balanced into cash and growth where members do not need to actively manage the allocation of their investments.

Australian Catholic Superannuation's chief executive, Greg Cantor, said many of its members were concerned about whether they would have enough super to fund their retirement.

"At the same time some would say that they lack confidence and knowledge to design an investment mix that will create a lasting and stable income," Cantor said.

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Cantor said RetireSmart is focused on making members' account balances last as long as possible into retirement.

"It's been designed to generate a consistent stream of income during retirement while continuing to grow savings," he said.

Under the strategy, a minimum two years' worth of pension payments are placed under cash for a secure short-term income, and the remainder under growth to increase the likelihood of the pension lasting longer into retirement.

"Our modelling showed that the two years' worth of pension payments stored in the cash bucket would provide an adequate safety net in the event of a significant market downturn," he said.