UniSuper has met one of the key recommendations of the Financial System Inquiry by launching a Comprehensive Income Product for Retirement (CIPR) called 'FlexiChoice'.
The $50 billion UniSuper says its new product will address "key retirement issues around longevity and sequencing risk" and has been designed to provide members with access to a default lifetime pension on retirement.
"Developed in close consultation with members, universities and unions, the announcement follows the federal government’s support of the Financial Services Inquiry recommendation calling on the superannuation industry to develop CIPRs to improve outcomes for retirees," said a statement by UniSuper.
"FlexiChoice is a product that will fit underneath the broad CIPR banner, giving UniSuper members access to a lifetime pension at retirement, an option not presently available to members of many other superannuation funds."
UniSuper chief executive Kevin O'Sullivan said FlexiChoice would provide greater security of retirement income and protection against outliving one's savings.
"UniSuper’s development of FlexiChoice represents a major shift in the way individual superannuation funds create products specifically to address how superannuation can deliver retirement solutions for members," Mr O'Sullivan said.
"Our scale, distinct member base and deep employer relationships enable us to truly understand the needs of our members and to be able to develop such an innovative product solution."
FlexiChoice straddles the gap between accumulation accounts and pension products, said UniSuper.
"The new product will provide eligible members with access to a lifetime retirement income pension combined with the flexibility to increase or decrease contributions, allowing individuals to manage competing financial obligations throughout different life stages while continuing to save for retirement," said the statement.
UniSuper said the FlexChoice product is expected to be made available to members in 2017-18.
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