The Government agreed to support the development of more efficient retirement income products and to facilitate trustees offering these products to members, in response to the Financial System Inquiry.
These products were labelled by the Murray Inquiry (Financial System Inquiry) as ‘Comprehensive Income Products for Retirement’, or CIPRs; however the Government proposes to use ‘MyRetirement products’ as a more consumer-friendly and meaningful label.
The MyRetirement 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. Through this framework, the Government is aiming to increase the efficiency of the superannuation system so it can better achieve the proposed objective of superannuation, which is to provide income in retirement to substitute or supplement the Age Pension.
The Government has released, for public consultation, a discussion paper that explores the key issues in developing the framework for CIPRs, or MyRetirement products. As part of aiding policy discussion, the Australian Government Actuary has prepared a report on a potential actuarial test, as a possible model for the regulation of MyRetirement products. Feedback on the proposed test can be provided in submissions to the Government’s discussion paper.
Related reviews and consultations
- Treasury – Development of the framework for Comprehensive Income Products for Retirement Discussion Paper [15 December 2016 – 7 July 2017]
Retirement Income Streams
- Treasury – Treasury Laws Amendment (Innovative Superannuation Income Streams) Regulations 2017 [21 March 2017- 12 April 2017]
- Department of Social Services – Social security means testing of retirement income streams [10 February 2017 – 10 March 2017]
- Treasury – Retirement Income Streams Review – final report [May 2016]
- Treasury – Review of retirement income stream regulation (Retirement Income Streams Review) – discussion paper [21 July 2014 – 5 September 2014]
- Australian Government Actuary – Actuarial Certification Test for Comprehensive Income Products for Retirement [29 May 2017]
- Financial System Inquiry – Final Report [7 December 2014]
- Australian Government Actuary – Towards more efficient retirement income products [prepared by the Australian Government Actuary for the Financial System Inquiry – November 2014]