The retirement income review covenant needs to be simplified by excluding comprehensive income products for retirement (CIPR), according to Aberdeen Standard Investments (ASI).
ASI managing director, Brett Jollie, told Super Review that the covenant which was touted to go live on 1 July, 2020, had been held back by CIPRs.
Jollie noted that while the framework would provide fact-based evidence to create sensible policy, it needed to be simplified.
“The covenant is a positive development but the CIPR is less so as it has been delayed again and again and will continue to hold up the government on retirement income progress,” Jollie said.
“It is currently not possible to put people through a single default scheme.”
Jollie said CIPR progress needed to separately develop so that the covenant could move along.
He noted that the challenge for the industry was creating a single mass customisable solution for retirees and the industry was not there yet.