Retirement
‘Fraud’: fund slams government retirement income mandate
A government-backed mandate for super funds to offer annuity-style products has been labelled “actuarial fraud” by a manager of one of Australia’s largest funds.
‘Fraud’: fund slams government retirement income mandate
A government-backed mandate for super funds to offer annuity-style products has been labelled “actuarial fraud” by a manager of one of Australia’s largest funds.
The mandate, that all super fund trustees offer members at least one “flagship” comprehensive income product for retirement (CIPR), is “not really a good idea”, Sunsuper national manager Ray Murray said.
A position paper put out last week by Minister for Revenue and Financial Services Kelly O’Dwyer describes CIPRs as products that provide life-long income streams.
The position paper says, “Requiring trustees to offer a CIPR to members would provide a better starting point at retirement and assist members to achieve their retirement income objectives without needing to design their own product.
“Trustees may choose to offer additional products at the time of offering the CIPR, but it should be clear that the flagship CIPR offering is the starting point for members.”
However, to Mr Murray, the fact that trustees are required at the very least to facilitate the implementation of a CIPR implies problems with the products and constitutes “actuarial fraud”.
Speaking during the Actuaries Institute’s Financial Services Forum on Monday, he said, “I do not see the demand; I do not see the members wanting to do this. Funds will spend a lot of money developing something which will have no demand and no people will participate in it.
“Why, if these are such a good idea, is compulsion involved? If they're a good idea, they'll be bought in the marketplace by the funds, so why force funds to go down something?”
However, Treasury’s principal retirement income policy adviser, Darren Kennedy, noted there is no explicit compulsion for funds to take up the products, rather for them to at least facilitate the implementation via third-party providers.
He said, “One of the feedbacks the government received through that consultation process was that really, if you want to affect change, you need to make that requirement compulsory for funds to offer.
“It's still a valid question and it's one of the tensions that have been debated over the last two years as this retirement income framework has been developed.”
Update: In response to Mr Murray's comments, Sunsuper has released its "corporate position" on the products.
"Sunsuper strongly supports the work the government is doing to improve the efficiency and effectiveness of the retirement income system. We recognise that pooled longevity products can be part of the overall solution to help retirees better manage their retirement savings.
"Sunsuper will continue to conduct analysis with a view to offer our members a CIPR product in the future."
RELATED ARTICLES
Retirement Planning
Retirement happiness on the rise, but cost-of-living worries cloud confidence
Australians aged 60 and over are generally positive about their retirement, but concerns about the rising cost of living continue to impact their lifestyle and financial security, according to the ...Read more
Retirement Planning
Australia's retirement system nears tipping point as withdrawals surpass contributions
State Street has unveiled a significant new research series, "Reimagining Retirement," which highlights a critical juncture for Australia's retirement system. The study, released on 1 April 2026, ...Read more
Retirement Planning
Online wills initiative aims to boost superannuation and retirement engagement
In a bid to increase engagement with superannuation and retirement planning, Aware Super has expanded its online wills service, following a successful pilot program. The initiative, launched in ...Read more
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Retirement happiness on the rise, but cost-of-living worries cloud confidence
Australians aged 60 and over are generally positive about their retirement, but concerns about the rising cost of living continue to impact their lifestyle and financial security, according to the ...Read more
Retirement Planning
Australia's retirement system nears tipping point as withdrawals surpass contributions
State Street has unveiled a significant new research series, "Reimagining Retirement," which highlights a critical juncture for Australia's retirement system. The study, released on 1 April 2026, ...Read more
Retirement Planning
Online wills initiative aims to boost superannuation and retirement engagement
In a bid to increase engagement with superannuation and retirement planning, Aware Super has expanded its online wills service, following a successful pilot program. The initiative, launched in ...Read more
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
