POWERED BY MOMENTUM MEDIA
Retirement products need overhaul
The development of innovative comprehensive retirement income products will require the Federal Government to examine not just the affordability of tax concessions, but look at how the entire retirement income system is interconnected.
Such is the argument from a non-partisan body of policy experts and academics, which added that with more Australians favouring income streams in retirement over lump sums, there was a need for greater innovation and reform in the retirement income system.
The Committee for Sustainable Retirement Incomes (CSRI) referred to an analysis released by the Australian Bureau of Statistics (ABS), which said almost 1.2 million people were receiving an income stream from their superannuation in 2013/14, while the proportion over 65 on income streams had increased from 20 per cent to 25 per cent over the past decade.
CSRI executive director, Patricia Pascuzzo, urged for the development of innovative comprehensive income products that tackled longevity risk and people's different circumstances.
"This is a complex challenge as it involves the intersection of the tax, super, age pension and age care systems," Pascuzzo said.
"The risk is that this complexity adds significant cost, favouring sophisticated, well-informed investors over the less financially literate with fewer resources."
The ABS also noted the average value of super balances for males aged 55-64 in 2013/14 was $322,000, while the average balance for females stood at $180,000.
"There are no simple answers to the superannuation gender gap," Pascuzzo said.
"A range of measures is needed if we are to make an appreciable difference to women's security in retirement."
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
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(%)
