Retirement Income Options Not Well Communicated to Australians – TAL

Investment Trends is a worldwide provider of market research and business insights; TAL has partnered with them to produce the Retirement Income Report for 2023.

The Retirement Income Report, now in its fourteenth year, highlights the advantages of knowing one’s alternatives when it comes to retirement income, such as improved results for members and better views of super funds.

According to Jenny Oliver, TAL’s chief executive for group life and retirement, the report shows that the insurer is serious about learning about the pension issues and requirements of Australians.

She made the following statement: “TAL is committed to collaborating with super funds and other partners to provide more Australians the opportunity to retire with confidence.” The number of individuals scheduled to retire in the next decade is 3.5 million. “As a partnership business that specializes in providing institutional solutions, TAL is uniquely placed to collaborate with funds to develop next-generation retirement solutions that meet the evolving needs of members at every stage of life.”

Important results
Almost two-thirds of Australians who aren’t yet pensioners didn’t know what their retirement income possibilities were and wanted more information, according to the 2023 Retirement Income Report. Moreover, it was found that 65% of people who are not yet retired were unaware that their super funds offered several goods to help with retirement.

A mere 20% of respondents are sure they will stay with their present super fund when they retire, while 34% will seek guidance, highlighting the importance of giving members product information ahead of time before they retire.

Important for those who are not yet retired
Many Australians still don’t know what their retirement savings alternatives are, but when asked what qualities they value most in a program, responses were quite clear.

The majority of non-retirees (57%) still prioritize product characteristics related to costs. Other qualities that non-retirees consider important when choosing a retirement income product include a lifelong stream of income (52%), guaranteed minimum payments (47%), and the ability to access funds as needed (43%).

The ability to get a steady stream of income in old age is important to more than half of those who took the survey. According to Ashton Jones, general manager for growth, retirement, and wealth partnerships at TAL, this demonstrates that members appreciate comprehensive superannuation retirement plans that provide a steady income for the duration of the members’ and their partners’ lives.

To acquire a lifetime income guarantee, members of super funds had to purchase standard annuities in the past. Inflation or investment protection would automatically cost them money. There are new choices on the market that provide longevity protection to members at no additional cost. We classify this as a novel offering, which numerous retirement funds are referring to as “lifetime pensions.”