POWERED BY MOMENTUM MEDIA
Retirement income market needs new strategies
Private market providers across Asia-Pacific could potentially fill gaps existing from government sponsored retirement systems and employer-sponsored pension arrangements, according to global consulting firm, Milliman.
A survey of insurance companies and financial institutions conducted by Milliman across eight countries showed consumer demand, product development, and opportunity for growth were amongst the key factors most affecting the Asian retirement income market.
Milliman South-East Asia and India managing director, Richard Holloway, said new perspectives on ways to capitalise were coming from technology employed in Australia’s retirement sector, and potential interest from private providers.
“Across Asia-Pacific, there is the potential for private market providers to complement and fill gaps that exist from government sponsored retirement systems,” he said.
“The development of robo-advice has begun to gain traction in the superannuation industry in Australia and we expect the same to occur in Asia in the near future.”
Holloway said other nations across the Asia-Pacific region were likely to follow after Australia’s superannuation system which had leveraged technology effectively.
“Technology advancements have now made it possible for financial institutions to provide consumers with tailored investment strategies and product solutions to achieve their goals in retirement,” he said.
More than 60 per cent of respondents to the Milliman survey believed financial advice was needed around the selection of features in a retirement income product, while most believed their national retirement system’s provisions were inadequate.
Recommended for you
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
