10 Dec 2015
UniSuper has this week unveiled plans to launch an innovative, integrated Comprehensive Income Product for Retirement (CIPR).
The new flagship super and pension solution, called FlexiChoice, is specifically tailored for our members in the higher education and research sector – as a result of extensive member research and stakeholder engagement. FlexiChoice will bridge the traditional gap between superannuation and pension products. It is both a super product – providing flexibility for members saving for retirement; and a pension solution – delivering greater certainty in retirement for members.
The new product will become our default fund, providing eligible members a lifetime retirement income pension, combined with the flexibility to increase or decrease contributions, allowing members to manage competing financial obligations throughout different life stages while continuing to save for retirement.
By giving this flexibility, FlexiChoice provides a more equitable and inclusive retirement solution by catering for members who may take time out from paid work; reduce hours at different career stages due to illness or carer responsibilities; prefer short-or-medium term contract work; or have occasional breaks between roles.
FlexiChoice will build on UniSuper’s proud history of providing pooled retirement savings products and its record of strong, long-term investment performance.*
Commenting on the initiative, Kevin O’Sullivan, UniSuper Chief Executive Officer,
“UniSuper’s development of FlexiChoice represents a major shift in the way individual superannuation funds create products specifically to address how superannuation can deliver retirement solutions for members.
“With changing work patterns, there is a need for more flexible super and pension solutions to reflect individual priorities during different life stages. The lifetime retirement income pension will address two of the key issues facing Australian retirees: investment risk and longevity risk.
“Historically, traditional Defined Benefit funds have been largely inflexible, forcing individuals to ‘pick and stick’ to one style of superannuation strategy. With FlexiChoice, members will be able to select the style that suits their current life stage and adjust that as circumstances evolve”.
We expect to open FlexiChoice in 2017/2018 at the earliest, using the interim period to make the necessary system and process changes, educate members and support employers in transitioning to the new offer.
Details on the technical features of FlexiChoice can be found in the media release (PDF).
*Past performance is not a reliable indicator of future performance.