On 1 July 2022, the retirement income covenant came into effect, requiring superannuation fund trustees to consider the retirement income needs of their members, expand individuals’ choice of retirement products and improve standards of living in retirement.
In this annual Retirement Strategy Forum, we discussed how superannuation funds came to their chosen strategy under the retirement covenant.
We also examined the various strategies they have and are considering, by addresing the following points:
- What is retirement income covenant best practice to look like?
- What strategies are best suited to supplement existing investment choices?
- Do deferred annuities and products with a form of guarantee have a role to play or do they just not find a willing audience among members?
- Does insurance have a role to play?
- How do we best engage members in the discussion, without relying on full scale advice as the solution for everyone?