New advisory group to help deliver choice and security for older Australians
A consumer and industry advisory group tasked to help in the next phase of development for a framework for Comprehensive Income Products for Retirement (CIPRs) has been established. The group will ensure that Australia's $2.5 trillion superannuation system fulfils its promise to provide Australians with retirement income.
Minister for Revenue and Financial Services Hon Kelly O'Dwyer MP has announced the establishment of a consumer and industry advisory group, which is expected to include nine experts representing consumers and industry. Among them are Willis Towers Watson Australia retirement solutions head Nick Callil, Jeremy Cooper, chairman of retirement income at Challenger, and Nerida Cole, head of financial advisory at Dixon Advisory.
The group also include Sally Evans, chairman of LifeCircle and non-executive director at Opal Specialist Aged Care and the Reserve Bank of Australia’s Deborah Ralston.
The minister believes that the members will contribute substantial experience and expertise from across the consumer and superannuation sector.
The group’s primary task is to give feedback and advice to Treasury on possible options and scope of a retirement covenant in the Superannuation Industry Supervision Act 1993. Superannuation trustees will design and offer suitable retirement income solutions to members.
Each member’s expertise and experience in aged care, asset management, product development, consumer protection, compliance, academia and law are expected to help the group fulfil its task. Following its advice, the government will undertake more comprehensive consultation with all stakeholders on the detail of its proposed approach.
In a media release, O'Dwyer’s office has expressed gratitude to stakeholders for their contributions to date on the development of a CIPRs framework.
The CIPRs’ introduction was the Financial System Inquiry’s recommendation in an effort to improve the retirement outcomes for Australian retirees. The Financial System Inquiry states in a report that the product would commence on the member’s instruction. The member may also choose to take their benefits in another way.
At a retirement income conference last year, Cooper addressed the longevity risk that retirees would outlive their savings. He reportedly pointed out that a super fund needs a retirement income philosophy.
“The return of a member’s money in the form of regular income and better managing their risks in retirement is not the same as the time-weighted returns achieved by the fund as [a] whole,” Investor Daily reports him as saying.
