A mix of investment grade corporate bonds and syndicated loans will give these accounts a diversification that Income Asset Management opines is superior to recently listed private credit offerings.
With industry funds feeling the heat from APRA, it’s likely more members will look for a better option, especially if they are nearing or in retirement. Those choosing to do so need to tread warily.
The older people get, the more cover they need, and the costlier it gets – especially if they have pre-existing medical conditions. The irony is they have typically never been in a better position, either timewise or financially, to travel.
Fresh research explains how a lifetime income product, combined with an allocated pension, could mean those on the cusp of retiring will require much smaller superannuation balances than ASFA’s recommended targets.
It’s been a sharp learning curve, but super funds are learning how to better engage with their members, especially those in retirement. And members are responding positively, with 70 per cent saying they trust their fund to make the right decisions.
For those bored in retirement or simply needing the dollars, starting afresh in a new business venture can be a viable option. It looks exciting and it can be financially rewarding but be warned – the challenges are many.
Chief retirement officers are assuming a pivotal role as super funds such as AustralianSuper give greater attention to members’ income needs in the decumulation stage.
For 30 years, it’s all been about accumulation. But the Retirement Income Covenant has changed the game, and super funds are now having to give their members retirement solutions. Some are doing it better than others.
