The superannuation industry’s mindset must change if it aims to capably manage longevity risk for retiring members, Mercer partner Martin Stevenson will tell an upcoming post-retirement solutions conference.

“Australia has a superannuation system that is, in many respects, a world-leading best practice. But post-retirement income is one of the weakest parts of the system,” Stevenson said.

Mercer had studied what is missing from the current set of post-retirement solutions, and also how comprehensive whole-of-life solutions can be developed. It found the industry’s sparse range of post-retirement solutions was the result of its focus on accumulation: what was now required is “a more ‘whole-of-life’ approach including more tailored solutions for retiring or retired members,” he said.

Meeting the post-retirement needs of members meant going beyond investment products and asset allocation, Wade Matterson, practice leader at Milliman Actuaries said.

“Understanding the nature of retirement together with the needs and goals of members will determine who is successful and who is not,” Matterson said.Funds needed to develop a full-service model that met the needs encountered by members in post-retirement, he said.

Both Matterson and Stevenson will speak at the upcoming 2011 Post-Retirement Solutions for Super Funds conference, convened by Conexus Financial, publisher of I&T News. Click Here to view the program.