The Retirement Income Review commissioned by the Government issued a consultation paper on 22 November 2019, and called for submissions by 3 February 2020. This article provides an overview of that consultation paper and makes some observations on the positive developments that are possible from the ‘fact base’ being established by the Review consultation paper.
Gyrostat believes that the Panel’s work has the potential to further improve the development of retirement income products, a critical element of the second and third pillars. Three key outcomes would be to:
- Further develop the risk adjusted returns disclosure arrangements criteria to assist retirees in understanding the risks inherent in retirement income products.
- Encourage the development and commercialisation of a variety of risk management approaches with the objective of improving risk adjusted returns for retirees. (Comprehensive Income Product in Retirement “CIPR” providers may form relationships with external providers as a component of the overall retirement solution.)
Develop guidelines for ‘alternative – conservative’ and ‘alternative – growth’ asset classifications, based upon the risk level rating and in particular the products ability to address sequencing risk.