With many super funds reluctant to build unique retirement solutions, acknowledging the different needs of different members is crucial, according to one asset manager.
Super funds need to look to build tailored retirement solutions for clients, Russell Investments said.
"Funds can't afford to wait for the answer to post-retirement products to just magically appear," Russell Investments' chief executive, Chris Corneil, said.
"We have an ageing population quickly approaching retirement, and current offerings aren't going to meet the challenge."
Russell said providing a tailored approach to asset allocation is an important part of super fund management.
Mass customisation of super funds needs to include members' individual goals and objectives, spending needs, account balance and risk tolerance.
"We believe mass customisation is the minimum standard of asset allocation advice that funds should deliver and members have the right to demand," Russell Investments' director of superannuation, Tim Furlan, said.
"Mass customisation is the way that we can deliver solutions that are right for the particular circumstances of individual retirees in a cost-effective manner.'
While income is lowered during retirement, asset allocation is still an important part of generating wealth, Russell said.
The company has highlighted a multi-asset approach to investment for post-retirement income needs in Australia.
"The focus on asset allocation doesn't mean that we're ignoring the risk of outliving your savings," Mr Furlan said.
"What we found is that investment risk overwhelms longevity risk early in retirement, so investments are where we need to start."
