Optimum Pensions has called on retirement professionals to check their life expectancy calculation methods are fit for purpose.
It said many retirement planning tools might not always reflect best practice when it came to determining and allowing for life expectancy.
“If the lens we view retirement through is inaccurate then incorrect conclusions will be drawn about retirement strategies and decisions. Retirees should not be paying the price,” it said.
Optimum Pensions noted many tools reflected outdated and inappropriate life expectancy statistics.
The firm said it had launched its new Lifespan Calculator which was based on the latest Australian Life Tables but also incorporated health data from a large reinsurer of longevity risk.
The tool did not show averages but results could be personalised by considering health and lifestyle factors. It also included both spouses in a couple and let each user focus on how confident they wished to be that their retirement planning timeframe could cover both their potential lifespans.
Optimum Pensions head of innovation, Jim Hennington, said: “This can add 10 years to the results that a less-accurate life expectancy calculator provides”.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
The QAR lead reviewer has told a Senate committee that the government’s demands of super funds conflict with their original purpose.
The Joint Associations Working Group has identified four key issues with the $3 million super tax that need to be addressed before the bill is legislated, including the major concern of taxing unrealised capital gains.
The industry body has recommended an approach that recognises unique advice needs, noting current super regulation and legislation is “overwhelmingly designed with simple, default arrangements in mind”.