Almost two million Australians will soon start drawing down A$300 billion ($218 billion) in savings as they leave the workforce, and that’s providing opportunities for domestic, and increasingly overseas, asset managers as retirement costs soar at the quickest pace in seven years.

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“The decumulation problem is the trickiest problem in finance to solve because everyone’s going to have a different set of needs and requirements and aspirations in retirement,” Richard Dinham, head of client solutions and retirement at Fidelity’s Australian unit, said in a phone interview. “The market is ripe for innovation.”

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Australia’s pension system, widely applauded around the world for its accumulation phase where employers are forced to pay 10% of salaries into staffers pensions, is coming under increasing scrutiny for its drawdown preparations. This will be one of the biggest tests in years to face the country’s $2.4 trillion retirement pool — the world’s fourth largest — as government pressure builds to ensure older Australians have enough to fund their final years.

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Allianz Retire+, a venture of Allianz SE and Pacific Investment Management Co., is in advanced talks with pension funds to help them develop their own products, according to Fintan Thornton, head of institutional solutions.

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