The Federal Government has a crucial role in supporting the development of a life annuity market, said Australia’s leading academic on superannuation issues.
This was due to private-market constraints, said Professor Michael Sherris, of the Australian School of Business, University of New South Wales.
Other factors included economies of size, the capital costs of guarantees, longevity-risk uncertainties, and efficient hedging of inflation.
“The most efficient result will be a public-private model with long-term risks supported by government through offering deferred life annuities, and private-market products with basic and more advanced longevity coverage,” he said.
Professor Sherris is speaking at the Post-Retirement Conference on Thursday, 10 March, in Melbourne at the Sofitel on Collins.
For information and registration, click here .