Exploring more options for retirement income products

The Government is delivering on our election commitment to review regulatory barriers restricting the availability of retirement income stream products.

Australians are looking for more options to better manage their retirement income and manage associated investment and inflation risks.

We are also committed to providing self-funded retirees with confidence that their funds will not run out because of inappropriate forced withdrawals by reviewing the minimum payment levels for account-based pensions.

The Government wants to encourage greater product innovation in retirement income products that better cater for the evolving and differing retirement preferences.

On Monday 21 July the Government issued a discussion paper which considers key areas such as:

• The regulatory barriers restricting the availability of relevant and appropriate retirement income stream products;
• The minimum payment requirement for account-based pensions; and
• Facilitating deferred lifetime annuities by extending concessional taxation treatment

The discussion paper is now available on the Treasury website (http://treasury.gov.au/ConsultationsandReviews/Consultations) and submissions will be accepted until 5 September 2014.

The Financial Systems Inquiry is also considering some of these issues. There is also an opportunity for submissions (http://fsi.gov.au/consultation/) to be made to that inquiry.
Eric Hutchinson Federal Member for Lyons