Home News Retirement income covenant will provide greater support for older Australians: COTA

Retirement income covenant will provide greater support for older Australians: COTA

The government's new retirement covenant plan could force superannuation funds to play a more active role in supporting members generate maximum retirement incomes.

By Aaron Bell

First published on 26 Nov 2021

Fact Checked

Retirement income covenant will provide greater support for older Australians: COTA

The proposal means all superannuation funds (excluding SMSFs) will have to develop and publish a retirement income strategy for members by 1 July 2022, subject to the passage of legislation.

The move has been welcomed as a significant step toward improving the lives of older Australians in retirement, by older persons peak body Council on the Ageing (COTA) Australia.

Currently retirees can access their superannuation after turning 60 with little or no guidance from their fund.

The COTA said this leads to many retirees not having the confidence to utilise their funds as they age, compromising their quality of life.

COTA Chief Executive Ian Yates said superannuation funds have a responsibility to their members.

“While superannuation funds have a responsibility to optimise the “nest egg”, they have an equal responsibility to ensure that when the egg is hatched the funds have products and services that support the optimum quality of life and dignity of their members in their retirement," he said.

“The Retirement Income Covenant focuses on getting funds to rebalance their planning and advice equally on the accumulation and retirement phases, ensuring the system works as it was intended.

“While welcoming the Covenant, we note this legislation as presented is a missed opportunity for Government to legislate the purpose of the Superannuation Guarantee as recommended by its recent Retirement Income Review.

“This legislation builds on the Morrison Government’s recent and welcome introduction of other legislation that will see all workers who earn less than $450 a month from their employer for the first time receive superannuation for every dollar they earn.”

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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Loan amount

Compare

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	Max LVR	as ofNovember 22, 2024

	6.99^%_p.a.	7.00^%_p.a.	^$2,659	Variable	N/A	^$720	70^%	More details
FEATURED	loans.com.au – SMSF 70 Minimum 30% deposit needed to qualify Available for purchase or refinance No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application
Disclosure
FEATURED loans.com.au – SMSF 70 Minimum 30% deposit needed to qualify Available for purchase or refinance No application, ongoing monthly or annual fees. Dedicated loan specialist throughout the loan application More details Disclosure
	7.19^%_p.a.	7.74^%_p.a.	^$2,712	Variable	^$395	N/A	60^%	More details
	WLTH – Ocean SMSF 60 P&I ($50k - $2m) Offset facility EASY Refinance with minimal documentation Residential & Commercial Australia’s first certified Impact Lender
WLTH – Ocean SMSF 60 P&I ($50k - $2m) Offset facility EASY Refinance with minimal documentation Residential & Commercial Australia’s first certified Impact Lender More details
	7.24^%_p.a.	7.26^%_p.a.	^$2,726	Variable	^$0	^$710	70^%	More details
	Firstmac – SMSF 70
Disclosure
Firstmac – SMSF 70 More details Disclosure
	7.25^%_p.a.	7.65^%_p.a.	^$2,729	Variable	^$30	^$825	80^%	More details
	Liberty Financial – Residential SMSF (LVR <80%)
Liberty Financial – Residential SMSF (LVR <80%) More details
	7.74^%_p.a.	7.76^%_p.a.	^$2,863	Variable	^$0	^$710	80^%	More details
	Firstmac – SMSF 80
Disclosure
Firstmac – SMSF 80 More details Disclosure
	7.75^%_p.a.	7.83^%_p.a.	^$2,866	Variable	^$0	^$995	80^%	More details
	La Trobe Financial – SMSF Residential
La Trobe Financial – SMSF Residential More details
	7.49^%_p.a.	7.50^%_p.a.	^$2,794	Variable	^$0	^$720	80^%	More details
FEATURED	loans.com.au – SMSF 80 Minimum 20% deposit needed to qualify Available for purchase or refinance No application, ongoing monthly or annual fees. Dedicated SMSF loan specialist throughout the loan application
Disclosure
FEATURED loans.com.au – SMSF 80 Minimum 20% deposit needed to qualify Available for purchase or refinance No application, ongoing monthly or annual fees. Dedicated SMSF loan specialist throughout the loan application More details Disclosure

SMSF 70

Product Features

Minimum 30% deposit needed to qualify
Available for purchase or refinance
No application, ongoing monthly or annual fees.
Dedicated loan specialist throughout the loan application

Monthly repayments:$2,659

6.99%Advertised Rate (p.a.)

7.00%Comparison Rate*

More details

Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 22, 2024. View disclaimer.

Important Information and Comparison Rate Warning

Image by Anukrati Omar via unsplash

Aaron Bell

Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the InfoChoice Group. In the interests of full disclosure, the InfoChoice Group are associated with the Firstmac Group. Read about how InfoChoice Group manages potential conflicts of interest, along how we get paid.

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Product Coverage and Sort Order

We strive to cover a broad range of products, providers, and services; however, we do not cover the entire market. Products in our comparison tables are sorted based on various factors, including product features, interest rates, fees, popularity, and commercial arrangements.

Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes.

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Comparison Rate Warning and Base Criteria

For home loans, the base criteria include a $400,000 loan amount over 30 years. For car loans, the base criteria include a $30,000 loan over 5 years. For personal loans, the base criteria include a $20,000 loan over 5 years. These rates are only examples and may not include all fees and charges.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Monthly Repayment Figures

Monthly repayment figures are estimates that exclude fees. These estimates are based on the advertised rates for the specified term and loan amount. Actual repayments will depend on your circumstances and interest rate changes.

Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you.

Related Brands

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The information provided by Savings.com.au is general in nature and does not take into account your personal objectives, financial situation, or needs. We recommend seeking independent financial advice before making any financial decisions. Before acquiring any financial product, obtain and read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD), and any other offer documents.

Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au’s Financial Services and Credit Guide (FSCG).

Retirement income covenant will provide greater support for older Australians: COTA

loans.com.au – SMSF 70

loans.com.au – SMSF 70

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

Firstmac – SMSF 70

Firstmac – SMSF 70

Liberty Financial – Residential SMSF (LVR <80%)

Liberty Financial – Residential SMSF (LVR <80%)

Firstmac – SMSF 80

Firstmac – SMSF 80

La Trobe Financial – SMSF Residential

La Trobe Financial – SMSF Residential

loans.com.au – SMSF 80

loans.com.au – SMSF 80

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Retirement income covenant will provide greater support for older Australians: COTA

loans.com.au – SMSF 70

loans.com.au – SMSF 70

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

Firstmac – SMSF 70

Firstmac – SMSF 70

Liberty Financial – Residential SMSF (LVR <80%)

Liberty Financial – Residential SMSF (LVR <80%)

Firstmac – SMSF 80

Firstmac – SMSF 80

La Trobe Financial – SMSF Residential

La Trobe Financial – SMSF Residential

loans.com.au – SMSF 80

loans.com.au – SMSF 80

Aaron Bell

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Important information

Editorial Integrity

Advertiser Disclosure

Product Coverage and Sort Order

Comparison Rate Warning and Base Criteria

Monthly Repayment Figures

Related Brands

General Advice Disclosure