Reviewing retirement income products
Comprehensive Income Products for Retirement (CIPR)
The Australian Government will establish a consumer and industry advisory group to assist with the development of a framework for Comprehensive Income Products for Retirement (CIPR).
A good example of a CIPR is an annuity tailored to provide a steady income in retirement. One of the biggest issues is that some people run out of savings before they die. But if annuities are accepted widely, the risk of outliving your savings can be eliminated.
The advisory group is comprised of nine experts whose central task is to provide feedback and advice to Treasury on possible options and scope of a retirement covenant in the Superannuation Industry Supervision Act 1993.
The introduction of CIPRs was a recommendation made by the Financial System Inquiry, in a move to boost the retirement outcomes for Australian retirees.