The Actuaries Institute has urged policymakers to focus on the speedy introduction of a Comprehensive Income Products in Retirement (CIPR) framework to deliver greater income protection and security throughout their retirement.
In a pre-budget submission to the Federal Government, the institute said the Government should quickly establish a CIPR framework and remove any social security means testing and taxation policy settings that constrain CIPR product development and consumer take up.
"The introduction of CIPR-style products should deliver greater income security and protection throughout retirement," the submission said.
The submission also said it agreed with the Australian Prudential Regulation Authority (APRA) that the Government should pursue legacy product rationalisation more vigorously.
"…instilling greater public confidence in the life insurance sector to potentially boost demand for risk products with the consequent effect of reducing social service payments," it said.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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