Government proposes new retirement income products

The government has released a new discussion paper that proposes a framework for the creation of more efficient retirement income products, as part of its response to the Financial System Inquiry’s recommendations.

According to a statement, the government is calling for feedback from consumer groups, the superannuation industry and other interest stakeholders on the proposed development of ‘Comprehensive Income Products for Retirement’ (CIPRS).

The framework is 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, the statement said.

As part of the consultation, the government will be seeking to change the FSI's name for CIPRS to ‘MyRetirement products’, which is more consumer-friendly.

“As Australians enjoy longer and healthier lives and the superannuation system matures, it is important we get the settings for our superannuation system right,” said Minister for Revenue and Financial Services Kelly O’Dwyer.

“This is an important reform that will help lift the living standards and choices of older Australians. There are seldom other reforms that offer such large potential increases in income, without a cost to taxpayers.”

The development of MyRetirement products will build on the government’s superannuation reform package, which removes tax barriers to the development of new, innovative retirement income stream products, the statement said.

Submissions to the discussion paper are due 28 April 2017.

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