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As Australia's ageing population increases the gap between superannuation benefits taken and contributions made is expected to narrow in the years ahead: Mercer's modelling predicts the cross over point will occur in 15 to 20 years' time, the super industry must be ready to expand its focus from savings accumulation to providing sustainable, low-risk options for paying benefits.
As the baby boomers leave full-time work, these increasingly savvy retirees will create a demand for more sophisticated products that share risk more equitably, and at a reasonable cost. In order to remain competitive and retain members, super funds need to provide options and products that provide flexibility, manage risk and to deliver a comfortable income.
Register to receive Mercer's report, The Australian Retirement Income Challenge, to understand the issues and solutions more fully.
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