Number One With A Bullet: Adding Defence to a ‘CIPR’ Retirement Solution For Super Members
Barely a year ago, few people knew the meaning of a strange new acronym in the superannuation industry’s dialogue – the concept of a ‘CIPR’ or Comprehensive Income Product for Retirement. Yet today, if superannuation themes were arranged, like pop songs, into a Top 40 chart, CIPR would be ‘number one with a bullet’ – on high rotation and the topic du jour in fund strategy sessions and at industry forums. The Federal Government recently upped the ante on CIPR dialogue and planning by formally endorsing the idea of superannuation trustees pre-selecting a default CIPR for each member’s retirement1.
1See Federal Government paper, “Improving Australia’s financial system: Government Response to Financial System Inquiry” 2015. The Government plans to introduce CIPR legislation by end of 2016.