After a two-year delay the much-anticipated Retirement Income Covenant (RIC) is now on track to launch next July in a move destined to reshape the Australian superannuation fund universe.
First mooted in a May 2018 Treasury paper, the RIC was originally slated to go live in 2020 with new obligations for super funds intended to shift the market trajectory from accumulation phase to retirement income mode.
In the 2018 report preamble, Treasury noted: “The covenant will codify the requirements and obligations for superannuation trustees to consider the retirement income needs of their members, expanding individuals’ choice of retirement income products and improving standards of living in retirement.”