• Innovative retirement income stream products

    Currently there are rules restricting the development of new retirement income products.

    From 1 July 2017, the government will remove these barriers by extending the tax exemption on earnings in the retirement phase to products such as deferred lifetime annuities and group self-annuitisation products.

    The intent of the change is to provide greater choice and flexibility for retirees to manage the risk that they outlive their retirement savings.

    Further information will be published when it becomes available.

    Summary of impacts for self-managed super funds

    • There will be a potential increase in members investing in deferred lifetime annuity products.
    • The value of these products at the time ECPI can be claimed will need to be reported for the transfer balance cap.
    Last modified: 22 Feb 2017QC 51307