Resources & Articles
Surprising ways lifetime income products are market linked
Market Linking, also known as “Investment Linking”, is a product feature where the account balance of lifetime income products is invested partly or fully in investment options provided by the product provider. Five of the six of current providers of lifetime income products employ market linking as a product feature, however the ways that this is provided differ substantially.
Age Pension Incentive
Only 60 per cent of the income from a lifetime income product is assessed as income for Age Pension means testing. This results in higher Age Pension income for clients who are impacted by means testing - and cannot be ignored.
Retirement Income Made Easy: Understanding Lifetime Income Products
The basic concept of a lifetime income stream product is where, in exchange for a lump sum paid in by an investor, the product provider (a life insurer or a superannuation fund), pays an income each year, for the life of the investor or, if there is a spouse beneficiary, for the life of the last survivor of the two individuals.
Treatment of Lifetime Income Stream Products
The treatment of Lifetime Income Stream Products for Social Security Assets and Income Tests as well the Conditions for Release of Superannuation Moneys are important subjects which are common to the income stream products presented in this website.
Retirement Income Covenant
The Retirement Income Covenant codifies the requirement and obligations of superannuation trustees to improve retirement outcomes for individuals whilst enabling choice and competition. However, the obligation to have a flagship retirement product was changed to having a strategy to meet the same sort of objectives.
Retirement Incomes Review
In 2019 the Treasury announced a review into the retirement income system. This was recommended by the Productivity Commission in its report Superannuation: Assessing Efficiency and Competitiveness. The final report (648 pages) provides a fact base of the current system and to improve understanding of the operation of the system and the outcomes it delivers to Australians.
Financial System Inquiry
The Inquiry is charged with examining how the financial system could be positioned to best meet Australia’s evolving needs and support Australia’s economic growth.
Super System Review
The Super System Review was carried out in 2010 to look into the operation and efficiency of Australia’s compulsory superannuation system. As a result, the Stronger Super reforms were announced, including MySuper.
ADVISER USE ONLY: Learn how to research, compare and choose lifetime income products in Australia.