The big reforms that could boost retiree incomes by 30 per cent
Retiree incomes could increase by as much as 30 per cent if superannuation funds were forced to offer ‘longevity-based’ products, the Actuaries Institute has claimed.
In a new paper released on Thursday, the peak professional body said Australian retirement incomes would be significantly boosted through the compulsory use of ‘longevity risk’ managing products.
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These products, such as lifetime annuities, are intended to provide a stable, regular income to retirees for their entire life. And although they have long been popular and effective overseas, UNSW associate professor and report author Anthony Asher told The New Daily Australia has been slow to adopt them.
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By creating a broader range of these products and making them a compulsory part of Australia’s superannuation system, Professor Asher said retirees will enjoy bigger incomes without running out of money. But he said “draconian” laws preventing super funds from giving members the advice they need will first need to be amended.
Read more @The New Daily
