Government consults on new retirement income disclosure fact sheet

The Government is consulting on a retirement income disclosure fact sheet – a simplified document with key figures and metrics to help consumers compare products.

“These fact sheets will cut through to the key features that matter when making retirement income decisions,” said Assistant Treasurer Stuart Robert.

“Currently, when people approach retirement they are confronted with complex legal and financial information and long and complex documents. Typically, these documents do not provide clear information on the expected level, variability and duration or retirement income,” he said.

Comprehensive Income Product for Retirement (CIPR) delayed 2 years

he Government has announced the start date for Comprehensive Income Product for Retirement (CIPR) will be pushed back two years, to July 2022.

CIPR was originally a recommendation of the Financial System Inquiry (FSI), and the Government has slowly been progressing the policy. A July 2022 start date would mean it was around 7.5 years between the recommendation of the FSI and the product being available to consumers.

Comprehensive Income Product for Retirement (CIPR): a retirement income product pre-selected by the trustee, which balances competing objectives in retirement – maximising income, longevity risk management and access to some capital. Read more...

SMSFs to be required to have Retirement Income Strategy

SMSFs would be required to develop a Retirement Income Strategy under changes to superannuation being developed by the Government.

The Government has released a position paper on the Retirement Income Covenant, which would require super funds – including SMSFs – to develop a Retirement Income Strategy for members.

“For too long superannuation has been focused only on accumulating savings. A retirement income framework is a pivotal part of the Government’s reform agenda for superannuation – an agenda squarely focused on protecting and improving outcomes for superannuation members,” said Minister for Revenue and Financial Services Kelly O’Dwyer. Read more...

CIPR framework “neither necessary nor sufficient”

The Government’s proposed Comprehensive Income Products for Retirement (CIPR), also known as MyRetirement, framework has come under sharp criticism from the superannuation industry.

The Government has been slowly progressing the CIPR/MyRetirement framework, which follows from a recommendation in the Financial System Inquiry final report (released in late 2014), most recently with the establishment of an advisory group.

The Association of Superannuation Funds of Australia (ASFA) says CIPR is “neither necessary nor sufficient to achieve its stated objectives” as it is currently designed. Read more...

MyRetirement could lead to proliferation of unsustainable products

The Actuaries Institute, while supporting the MyRetirement framework, has warned that a ‘one size fits all’ approach could lead to the proliferation of unsustainable retirement products.

Treasury is consulting on the introduction of Comprehensive Income Products for Retirement (CIPRs), which was the term used when they were recommended by the Financial System Inquiry, also known as MyRetirement products, which is the Government’s preferred term.

The MyRetirement framework is, according to Treasury “intended to increase individuals’ standard of living in retirement, increase the range of retirement income products available, and empower trustees to provide members with an easier transition into retirement”. Read more...

Government releases “innovative” draft rules for superannuation pensions

The Government has released “innovative” draft new rules for superannuation pensions.

Minister for Revenue and Financial Services, Kelly O’Dwyer, has released the draft superannuation income stream regulations, Treasury Laws Amendment (Innovative Superannuation Income Streams) Regulations 2017, for public consultation.

Minister O’Dwyer, said the regulations, when made, will “continue the implementation of the Government’s superannuation taxation reforms”.

“These new rules will remove taxation barriers to the development of new products that will provide greater flexibility in the design of income stream products to give more choice to consumers, while ensuring income is provided throughout retirement.” Read more...

MyRetirement products (CIPR) discussion paper released

The Government has released a discussion paper on the introduction of Comprehensive Income Products for Retirement (CIPRs), or MyRetirement products – which is the Government’s favoured term.

“The Turnbull Government has today released a discussion paper exploring key policy issues to facilitate further development of a framework for the retirement phase of the superannuation system,” said Minister for Revenue and Financial Services, Kelly O’Dwyer.

It was a recommendation of the Financial System Inquiry, the final report of which was released in October 2015, that superannuation trustees be required to pre-select a CIPR for members. Read more...