POWERED BY MOMENTUM MEDIA
Demographic issue needs cashflow considerations
The super industry's efforts to resolve the baby boomer bubble has focused too much on asset allocation and product solutions rather than holistic solutions that start with advice and members' cashflow considerations.
Colonial First State senior executives said there had been an over-focus on developing a "silver bullet" to resolve the looming demographic challenge, when real solutions started with accessible and affordable advice.
Peter Chun, Colonial's general manager of product and investments, said retirees gravitated around their bank account and wanted the superannuation industry to provide flexible ways to manage their cashflow in retirement.
"I think industry has thought we'll build this great mousetrap," Chun said.
Cashflow considerations such as the minimum pension amount and the implications of aged care needed to be nutted out, they said.
Linda Elkins Colonial's executive general manager said banks could do more to support Australia's superannuation industry, as demographics changed, through their breadth of services.
"We are in a good position to listen to the voice of the customer," she said.
But legislative changes were needed to promote the development of suitable product solutions, according to Elkins.
Product was the final consideration in providing a retirement solution, Chun said. He said an allocated pension could provide the strong bedrock from which to manage member's cashflows.
It was more flexible and could be integrated with online banking compared to lifetime annuities, which were locked in and capital intensive, he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
