The Actuaries Institute remains optimistic the government would make legislative changes to remove barriers to choice in retirement, namely innovative annuity solutions that protect Australia's retired population.
The institute proposed changes to Regulation 106 in the Superannuation Industry Supervision Act (SIS) in its pre-budget submission to Treasury in January.
The Superannuation Roundtable first met in February to discuss the matter with Financial Services and Superannuation Minister Bill Shorten. It will convene again shortly although a date has not been confirmed.
"It's been flagged with Minister Shorten and he's been looking at this so we're hopeful we'll see some change," Actuaries Institute chief executive Melinda Howes told InvestorDaily.
"The government does want to have more choices available for retirees and Treasury has been looking at how to do that.
"It's a dire need as the baby boomers started retiring last year and only have the choice of account-based pensions."
Retirees did not have the ability to protect themselves from outliving their retirement savings, Howes said.
Australians were now amongst the longest living populations but there were less than 20 lifetime annuities available in Australia.
New generation products, such as a deferred annuity, would work as insurance that guaranteed an income stream from the time it begins, for example at age 85, until the end of the retiree's life, Howes said.
"The tax treatment on those products are not treated the same as an annuity that starts now, as the earnings in a deferred annuity are fully taxed," she said.
"This increases the price of the products by about 15 per cent."
The Actuaries Institute also lobbied for the products to be free of the assets test by Centrelink.
The Association of Superannuation Funds of Australia, the Financial Services Council and the Australian Institute of Superannuation Trustees were also lobbying for the same resolution.
The Actuaries Institute planned to conduct research on the recommendation of annuities by advisers, Howes said.
