The Government has confirmed it is moving ahead with progressing the Retirement Income Covenant which was deferred last year to 1 July, 2022.
Speaking at the Conference of Major Superannuation Funds (CMSF), Minister for Superannuation, Financial Services, and the Digital Economy and Minister for Women’s Economic Security, Jane Hume, said the purpose of the retirement income system was to provide income in retirement and smooth consumption between working life and retirement.
Hume said the covenant would require trustees to have a strategy to generate higher retirement incomes for members.
“The covenant allows super funds the flexibility to tailor their retirement income strategy to their specific membership base, while also allowing them to deliver solutions they think will work best for the particular cohorts of members in their fund,” she said.
“Once we pass the Your Future, Your Super reforms, this is the next cab off the rank.”
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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