- Yes (66%)
- No (21%)
- Not sure (13%)
Our latest poll asks you to consider your current advice proposition given the emergence of new lifetime income stream solutions.
Lifetime income streams are effectively a new category of retirement solution for consumers – still mainly comprising lifetime annuities, but which also include pooled longevity products and some new retirement income stream products being developed by life companies and super funds.
Their genesis stems from the 2017 reforms that created the Innovative Retirement Income Stream (IRIS) framework, since which life companies have expanded beyond traditional fixed annuities into:
- Investment-linked lifetime annuities
- Products with more flexible death benefits
- Products where income can vary with investment performance
- Hybrid structures combining guarantees with market participation
This new category of retirement income stream offers represents an evolution in how retiring Australians can shape the best long-term outcome for their circumstances (with certainty) and begs the question as to whether a corresponding evolution is taking place across advice practices in Australia, irrespective of whether the advice proposition is risk-focussed or generalist.
Latest research from TAL suggests there may exist a significant and untapped opportunity for all financial advisers, where its research has revealed only 38% of pre-retirees are familiar with this new income stream category and 87% would want to find out more if their super fund offered a lifetime income product solution (see: TAL Research Highlights Retirement Advice Opportunity).
To what extent are you and your advice practice colleagues devoting any time or more time to considering the emergence of this new category of retirement income solution? To what extent might this represent a new advice opportunity for risk-focussed advisers?
Tell us what you think and we’ll report back next week…
