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Retirement income framework deferred due to COVID-19

Jane Hume
Adrian Flores
25 May 2020 — 1 minute read

The government’s introduction of the Retirement Income Covenant scheduled to start on 1 July has been deferred to allow continued consultation and legislative drafting to take place following the coronavirus crisis.

In a statement, Assistant Minister for Superannuation, Financial Services and Financial Technology Jane Hume said the deferral will also allow drafting of this measure to be informed by the Retirement Income Review.

The revised date will be determined following further consultation on the Covenant.

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Ms Hume said the purpose of the Retirement Income Covenant is to establish an additional obligation for trustees to formulate a retirement income strategy for their members.

“We’ve been working for some time on a Retirement Income Covenant. While efficient accumulation is imperative and we are steadily chipping away at the inefficiencies of that part of the system, we need to build a smoother transition from the accumulation to the de-accumulation phase,” Ms Hume said.

“Of course, there is nothing stopping funds and their trustees from developing retirement income strategies now, and we’d encourage them to do so. Trustees don’t need to wait for us to legislate the Covenant.”

Adrian Flores

Adrian Flores

Adrian Flores is the deputy editor of SMSF Adviser. Before that, he was the features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at This email address is being protected from spambots. You need JavaScript enabled to view it..

Retirement income framework deferred due to COVID-19
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