Do not overlook SMSF in retirement review: SPAA

24 July 2014
| By Jason |
image
image
expand image

Claims by the Financial Systems Inquiry (FSI) that the retirement phase of superannuation was underdeveloped overlooked the self-managed superannuation sector and focussed on the current state of retirement income products according to the SMSF Professionals’ Association of Australia (SPAA). 

SPAA Technical & Policy senior manager Jordan George said the Australian retirement system was working well but further work needs to be done to develop other retirement income products to the same level as SMSFs. 

Speaking at SPAA’s Technical Conference in Sydney on Tuesday George said the FSI and upcoming Government Pension Review had identified that the retirement phase of superannuation was underdeveloped and did not match retirees’ risk management needs. 

He said SPAA had agreed with the FSI on this assessment but any further examination of the sector needs to look beyond products and examine the framework of the retirement system. 

“In this respect SPAA contends the SMSF sector is demonstrating just how well the Australian retirement system is working and meeting Government objectives by successfully providing income streams to retirees and is leading the industry in doing so.” 

Jordan stated that about 35 per cent of SMSF trustees are already in pension phase and 64 per cent of retirement phase assets are held by SMSFs and thus the long term adoption of appropriate policy was of importance to SPAA. 

He also said the FSI and pension review were opportunities to open up the availability of other relevant retirement income products which should focus on flexible, principles-based approaches and not compel people to adopt defined strategies.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

4 hours ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

9 hours ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

1 day 2 hours ago