Soon every super fund will have to provide a retirement solution to their members which sits alongside their existing account-based pension offerings. The impact on the financial advice sector will be significant.
While the controversial Your Future, Your Super reforms may be grabbing most of the headlines, government retirement policy for super funds is taking shape. The key policy instrument will be the Retirement Income Covenant (RIC), which will formalise requirements for super funds to provide retirement solutions for their members which provide regular income payments for life. The RIC is scheduled to take effect on 1 July 2022.
The range of retirement solutions offered by super funds is likely to be large. Some funds may white-label external annuity products. Others may create pooled solutions which bring confronting terminology such as group-self annuitisation. All these solutions could be offered in either lifetime or deferred (whereby income payments begin at a deferred a
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