The Government is seeking stakeholder views on exposure draft legislation that will introduce a retirement income covenant for superannuation trustees. The retirement income covenant will support retirees to have the confidence to spend their hard-earned savings, while enabling choice and competition in the retirement phase of superannuation.
The draft legislation would codify the obligation for superannuation trustees to have a retirement income strategy that outlines how they plan to assist their members in retirement. The strategy must consider how the trustee will assist their members to balance maximising their retirement income, managing risks, and have some flexible access to savings.
This exposure draft reflects the feedback received following the release of the retirement income covenant position paper earlier this year.
Subject to the passage of legislation, the retirement income covenant will take effect from 1 July 2022.