The RIC recognises that superannuation’s role extends beyond helping members accumulate savings. Retirement introduces a different challenge: turning those savings into a sustainable income that can last for life, while maintaining flexibility and managing risks such as longevity, inflation and market volatility.
For advisers, the RIC’s three objectives translate into the work of constructing an individual client’s retirement income strategy. Trustees are solving this problem at a member cohort level. You solve it one client at a time, with the added detail of a client’s specific assets, health, family circumstances, risk tolerance and objectives. The underlying challenge is the same: income, risk and flexibility need to be balanced.
Read the full CPD article and complete the accredited quiz to earn 0.5 hours of FAAA CPD in Technical Competence (Retirement).