POWERED BY MOMENTUM MEDIA
Govt urged to remove post-retirement obstacles
Many Australian retirees are living too frugally for fear they are going to run out of money, something which justifies the Government moving to clear obstacles to the development of appropriate post-retirement products, according to the Institute of Actuaries of Australia.
The Institute has used its pre-Budget submission to the Treasury to reinforce its arguments that the Government needs to act to remove legislative barriers that are preventing the innovation and development of retirement income stream products.
It said that data suggested that more than 80 per cent of retirement dollars now go into account-based pensions - a trend that suggests that Australian retirees are not just accumulating wealth through super and then spending it all at retirement.
"Indeed, many of them are living too frugally because they are worried about running out of money," the pre-Budget submission said.
It said the institute was confident that implementing the Financial System Inquiry (FSI) recommendations that aim to make retirement incomes more prevalent and efficient would eventually ease the demand for Age Pensions.
It said it particularly believed the FSI recommendation requiring superannuation trustees to pre-select a comprehensive income product for members retirement that delivered a regular and stable income stream and a component to manage longevity risk should assist the Government to achieve its objective of achieving a credible path to surplus.
Recommended for you
Speaking to Super Review, the $70 billion fund has unveiled its new solution to address the ‘cognitive load’ of retirement as members enter their golden years.
New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
New research has revealed over 60 per cent of retirees believe their super fund offers retirement income products suitable to support their retirement lifestyle.
Some retirees are “needlessly” paying two sets of fees and often more tax than they need to, according to the industry body.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
