The CSRI will pursue policies to assist retirees to better manage the various risks they face including longevity, inflation and market risks, as well as changing circumstances.
It will focus on the adjacencies between retirement incomes policies (including superannuation, age pension and housing), health, disability and aged care with a view to reducing siloed thinking and bringing a holistic perspective to light.
The policy positions to be adopted will recognize the diversity of needs and circumstances of individuals in terms of engagement, financial literacy, financial means and consumption needs in retirement.
The key areas are:
- To further the development of a post retirement regulatory framework that promotes efficiency and healthy competition in the market for retirement income solutions and enables super trustees to better meet the diversity of member needs in retirement. This involves progressing the development and implementation of regulatory arrangements to enable super trustees to offer their members “comprehensive income products for retirement” (CIPRs), as recommended by the Murray Inquiry report through the following measures:
- Development of design principles for CIPRs and regulatory arrangements for assessing products to qualify as CIPRs that meet the diverse needs of retirees while balancing the need for simplicity and scale economies.
- Removal of regulatory impediments to the development of retirement income products that would provide an effective hedge against longevity risk such as to promote healthy competition in the market for longevity protection.
- Legislative changes to clarify the trustee duty of care to ensure that members’ interests are appropriately protected without setting such a high regulatory hurdle as to discourage trustees from providing CIPRs.
- To further the development of policies to enable industry to provide solutions to assist retirees in meeting the rising costs of, and navigate the financial complexities associated with, aged care.
- Developing strategies for ensuring that the specialist advice needed for post-retirement (including aged care) is more broadly available to assist individuals, including better use of technology, to ensure that the solutions best match members’ needs in retirement.
- To pursue policies to better enable people to draw on home equity to supplement their retirement incomes and finance aged care.
- To pursue adequate retirement incomes for all Australians including people with broken work patterns and limited connection with the paid workforce.
- To improve the fairness and sustainability of the retirement income system by encouraging the implementation of policies to improve the targeting of tax concessions.