Scale Versus Segregation: Breaking Through The Retirement Solution Impasse
2015 looms as the year many large superannuation funds will move to address a critical strategic challenge: how to make superannuation a truly ‘whole of life’ financial solution for their members. The pension assets of superannuation funds are set to rise from the current one-fifth to more than one-third of total assets over the next decade, to an expected value of more than $1.5 trillion1. The growing weight of pension member capital is bringing to the fore the complex needs of members in postretirement phase. Increasingly, it is clear that these needs require an array of investment – and broader product – solutions specifically designed for pension members2.
1Super System Review: Final Report 2010, page 198 (valued in nominal terms).
2Note comments in the Financial Services Inquiry (Murray Inquiry) Interim Report 2014 that the superannuation policy area most in need of attention is the post-retirement phase.