New 'retirement income' role needed

New 'retirement income' role needed

Superannuation funds should create a new 'chief retirement income officer' role that focuses on the return of money to investors in retirement, argues a new report.


A new joint report by KPMG and Challenger titled Guiding members safely down a path in retirement said key issue faced by superannuation funds is a lack of clarity about who is responsible for delivering retirement income to members.

While the chief investment officer plays a critical role in the accumulation phase, responsibility for delivering member benefits “can get lost in the cracks between, product, member engagement and investments”, said the report.

“A new role, the chief retirement income officer (CRIO) could expedite implementation by taking charge of this important function in the one place,” the report said.

“Equipping this new CRIO with the right tools – internal and/or external – could provide tangible value to members, leading to better retention through retirement.”

The two companies said messages from funds to their members also needed to shift in focus to maintain engagement, saying that while “campaigns that focus on the inadequacy of retirement savings capture the attention of members ”, they also undermine confidence in the superannuation system.

“Funds have a pressing need to develop solutions that integrate engagement, advice and product to meet members’ needs as they navigate through their whole life,” they said.

Read more:

US equity income still attractive: SSGA

Global insurers embracing risk, says report

Banks blame 'legacy systems' for advice failures

Challenger annuities added to AMP platforms

NAB reports $6.48bn profit, holds dividend steady

Related Articles

 

New 'retirement income' role needed
ID logo
promoted stories

Appointments

Karen McKeown

Local Government Super appoints director

Reporter

Neil Cochrane

First State Super CEO to retire

Reporter

Pally Bargri

AMP chief risk officer for advice departs

Killian Plastow

Analysis

investordaily image

Corporate governance and advocacy in China

Therese Niklasson

Dug Higgins

The shifting LIC landscape

Dug Higgins

investordaily image

The perils of chasing niche infrastructure

Frithjof van Zyp