TAL has teamed up with Investment Trends, a global industry research firm that provides business insights, to release the 2023 Retirement Income Report.
Now in its 14th year, the Retirement Income Report outlines the benefits of having a good understanding of retirement income options, including producing better outcomes for members and improving perceptions of super funds.
Jenny Oliver, chief executive for group life and retirement at TAL, said the report reflects the insurer's commitment to understanding the challenges and needs of Australians in retirement.
“With 3.5 million people expected to retire in the next decade, TAL is committed to collaborating with super funds and other partners to provide more Australians with the opportunity to retire with confidence,” she said. “As a partnerships business that specialises 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.”
The 2023 Retirement Income Report found that nearly two in three Australian non-retirees were unsure about their retirement income options and needed more information. It further revealed that 65% of non-retirees did not know about existing retirement income products offered by their super funds.
Only 20% of the respondents were certain that they will remain with their current super fund in retirement, while 34% will get advice, emphasising the value of proactively providing members with product information before they retire.
Although many Australians remain unsure about financial options for retirement, the respondents were sure about the product features they value.
Among product features, fees remained the top priority for non-retirees (57%). Other features non-retirees deemed crucial when selecting a retirement income product include having an income that will last for life (52%), receiving guaranteed minimum payments (47%), and having flexible access to capital (43%).
“Over half of respondents say that income for life is a top consideration when selecting a retirement income product. This shows that members value holistic superannuation retirement propositions that provide them with the confidence of a regular income for as long as they and their partner live,” said Ashton Jones, general manager for growth, retirement, and wealth partnerships at TAL. “In the past, the only way super fund members could get a guaranteed income for life was to take up a traditional annuity. By default, they'd have to pay for inflation protection or investment protection as well. Now in the market, we're seeing options for members to get longevity protection without having to pay for this extra protection. We see this as a new product category that many super funds are calling ‘lifetime pensions’.”
This month, TAL launched a fully integrated digital solution to improve the experience of its super fund members.
