Retirement Incomes – Issues and Next Steps

Abstract

The Actuaries Institute has made the development of an appropriate retirement incomes market a major policy priority. It is therefore pleasing to see how the issue has been picked up by the Financial Systems Inquiry (FSI) Final Report, and by many others in government and industry. As the FSI summarises: The superannuation drawdown phase of Australia’s retirement income system provides limited choice for managing risk in retirement. It also gives little guidance to retirees in navigating complex and important financial decisions. Retirees do not efficiently convert superannuation benefits into income streams in retirement. This note mentions some recent developments, and sets out a view on priorities for the years ahead. Although I am convenor of the Institute’s Retirement Incomes Working Group (RIWG), the views expressed here are personal.

Keywords: annuities, regulatory impediments, consumer protection, research