Super funds should be forced to provide advice to their retiree members about retirement income products, argues the Committee for Sustainable Retirement Incomes (CSRI).
The Committee for Sustainable Retirement Incomes has released a 'summary of outcomes' from its Leadership Forum in Canberra earlier this month.
The 150 attendees agreed that superannuation members will likely need a range of 'comprehensive income products for retirement' (CIPRs) as recommended by the 2014 Financial System Inquiry.
Members will also need advice and guidance when it comes to choosing an appropriate CIPR, said the report.
"[Superannuation] trustees should therefore be obliged to provide members guidance in making a selection or outsourcing that role," said the CSRI.
"As this would be a form of advice, it would represent a significant shift from current trustee requirements in relation to MySuper."
In addition, the rules for scaled and intra-fund advice may need to be modified to better accommodate the provisions of CIPRs, and to provide trustees with 'safe harbour' where they meet the requirements.
The CSRI also acknowledged the need for member engagement and communication when it comes to retirement income products, noting that the "clumsy acronym" CIPR had "failed to capture the public imagination".
"The forum supported a change in the acronym to 'SLIPPeRs' – Sustainable Lifetime Income Products for People in Retirement," said the report.
The report also outlined the CSRI forum's findings on the gender super gap, the sustainability of the superannuation system, housing as a "fourth pillar" of retirement and aged care.
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