CALI has responded to Treasury’s consultation on the guidance on best practice principles for superannuation retirement income solutions.
High quality retirement outcomes are coming into critical focus as Australia’s population ages and looks beyond the accumulation phase of superannuation. Australia’s life insurers stand ready to support this important demographic shift.
Our submission notes the following:
- Longevity risk is the key risk facing retirees, and the protection life insurers provide through lifetime income products is proven to support members to maximise their retirement assets and enjoy high standards of living in retirement without the fear and uncertainty of outliving their savings.
- Insured lifetime income products support funds to meet the requirements of the Retirement Income Covenant (RIC) by ensuring members have access to a range of products and strategies that meet their retirement needs.
- Life insurers offer funds and their members domestic and global risk transfer expertise, capacity and prudential strength.
- The principles will be most effective when implemented in alignment with, among other reforms, Delivering Better Financial Outcomes (DBFO), the Framework, APRA’s review of capital standards for longevity products, the RIC and improved member-level data sharing protocols.