Rainmaker’s executive director of research and compliance, Alex Dunnin, said the research house estimates that 39 percent of all supercars are owned by people over the age of 65, and that proportion will rise in the coming decades as the population ages.
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However, he said retirees were not well served by super funds because fees were often too high and many annuity-style products were too complicated. With people surviving longer, Dennin said the risk of people surviving longer than super would be a big problem, but consumers haven’t traditionally bought annuities. Super funds are focusing more on this market segment, he said, and there are more “longevity” products on the horizon.
“While it sounds counterintuitive, super-retirement is set for turmoil. Groups like AMP can be one of the biggest disruptors. However, other super-funds make noise when they go down the same path,” Dennin said.
The AMP move comes as super-fund returns have been hit hard by rising inflation and interest rates this year, and George said this has led some members to switch their money to less risky options.
“The discretionary contributions are definitely a little lower, and you’re already seeing a move, especially from clients who have been advised, toward more conservative options,” said George.
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Originally published at Melbourne News Vine
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