Colonial First State (CFS) has included a new feature on its FirstChoice platform aimed at helping eligible members get better access to the age pension.
The Retirement Income Optimiser enhancement has been released in preparation for the introduction of the CFS lifetime pension next year.
While the feature is active, Centrelink can assess a calculated balance based on deemed investment earnings rather than the member’s actual balance and returns. If the deemed balance is lower, the member may be able to access greater age pension entitlements once the lifetime pension begins.
According to CFS, the Retirement Income Optimiser will work in the background while individuals build their super. It will not change any of their existing settings on investments, fees, insurance, account features or contribution strategies.
“One of the biggest concerns Australians have is whether their savings will last throughout retirement. Retirement Income Optimiser gives eligible members a way to prepare for future lifetime income options while retaining flexibility over their super today,” CFS Superannuation chief executive Kelly Power said.
It is expected the feature, launched today, could boost a member’s overall retirement income depending on their individual circumstances when used in conjunction with the impending CFS lifetime pension product.
Eligible FirstChoice Wholesale Personal Super members have the feature switched on automatically, but can opt out at any time. Eligible FirstChoice Employer Super members will need to opt in to have the feature activated.
CFS also hopes the feature presents an opportunity for advisers to start talking to their clients early and often about their retirement plans and potential future income needs and sources.
“Retirement is not a single decision made at one point in time. By giving members more options before they retire, we can help them approach those decisions with greater confidence and support advisers in delivering advice that reflects each client’s circumstances,” Power explained.
The feature is part of CFS’s broader retirement strategy, which will culminate in the launch of additional retirement income solutions, such as the lifetime pension, next year.
