Retirement Income Covenant

Summary: National Seniors Australia supports the draft legislation for the Retirement Income Covenant. They agree with the approach taken, allowing flexibility for superannuation trustees to tailor the strategy to its members. They do not support legislation that compels or encourages retirees to adopt specific products if not in their best interests. Trustees need to ensure members' different circumstances are fully understood when formulating a retirement income strategy. A retirement income strategy should inform product and service development to ensure a suite of products available to members. Adequate information and advice services, including calculators and tools, should be available to enhance members' decision-making for a responsive retirement strategy.