Submission to the Retirement Income Covenant Position Paper consultation

Summary of National Seniors Submission to Retirement Income Covenant Position Paper Consultation National Seniors appreciates the opportunity to provide feedback on the Treasury Position Paper on developing a Retirement Income Covenant. They support policies to ease transition into retirement, help retirees manage risks, and improve income adequacy. There is positive consumer sentiment towards improving options to manage longevity risk. Concerns about members with limited superannuation assets and financial literacy not being best served under proposed principles. Emphasis on engagement and guidance for fund members to choose suitable retirement income products. Support for third party products and the principle of consent in adopting a Comprehensive Income Product for Retirement (CIPR). Concerns about the advice obligations associated with a flagship CIPR and exceptions for individuals for whom CIPRs are unsuitable. Future considerations include lifetime engagement, legacy products, and opposition to a safe harbor provision.