Australia. Innovations in Retirement Income Solutions
The headline gave me hope: “Innovative income product now available for retiring Australians”.
It was July 2017. The description of this new product was promising as it was “designed to help Australians more easily and confidently manage their superannuation in the lead up to and during retirement.”
But then, like so many times before … ”[A]n account-based pension that offers a flexible and simple way for people to convert their superannuation into a steady income stream.”
Lessons for super funds from the Royal Commission Where did financial services go wrong?
How is that innovative? What is new about an account-based pension? It might have been an adequate product for some in the past and maybe in the future, but more innovation is required to help individuals and society deal with the retirement crisis that is emerging driven by continued increases in life expectancy. For many Australians living to 90 years of age and beyond is becoming commonplace. Funding longer lives is a challenge for individuals, and society.
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