Retirement income covenant will provide greater support for older Australians: COTA

Retirement income covenant will provide greater support for older Australians: COTA

The government's new retirement covenant plan could force superannuation funds to play a more active role in supporting members generate maximum retirement incomes. The proposal means all superannuation funds (excluding SMSFs) will have to develop and publish a retirement income strategy for members by 1 July 2022, subject to the passage of legislation. The move has been welcomed as a significant step toward improving the lives of older Australians in retirement, by older persons peak body Council on the Ageing (COTA) Australia. Currently retirees can access their superannuation after turning 60 with little or no guidance from their fund. The COTA said this leads to many retirees not having the confidence to utilise their funds as they age, compromising their quality of life. COTA Chief Executive Ian Yates said superannuation …
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