CFS launches pension bonus

Colonial First State (CFS) has launched new retirement solutions offering eligible members a one-off payment when moving from accumulation into retirement.

As previously mentioned in May, the CFS Pension Bonus is available to eligible FirstChoice members transferring into a new FirstChoice Wholesale Pension, with members automatically assessed and no application or additional paperwork required.

Under the current published rate of 0.80%, a member transferring an eligible balance of $350,000 would receive a Pension Bonus of $2800, which is added to the opening balance of their new pension and invested according to their selected investment options.

CFS Superannuation chief executive Kelly Power said the initiative was designed to provide practical support during the transition into retirement.

"Pension Bonus delivers an immediate financial benefit for eligible members when they commence a pension and removes the need for additional applications or paperwork," Power said.

"It's a simple way of supporting members at an important stage of their retirement journey."

The launch forms part of the CFS's broader strategy to expand its retirement offering, with further solutions planned to help members generate income, manage wealth and navigate retirement decisions.

Power said longer life expectancies were increasing the importance of helping Australians manage their super once they stopped working.

"Australians are living longer and spending more years in retirement, increasing the importance of helping people make the most of their superannuation once they stop working," Power said.

"Our focus is on providing practical solutions that help members move confidently from accumulation into retirement income."

CFS will launch its Retirement Income Optimiser later this year, a FirstChoice capability designed to help improve retirement income outcomes by optimising how assets are assessed for Age Pension purposes.

The group said additional retirement income solutions are planned for 2027 as it continues to expand its retirement offering.