CFS launches retirement income optimiser

Colonial First State (CFS) has launched a new retirement feature designed to give eligible super members greater flexibility in preparing for retirement and accessing future income options.

The Retirement Income Optimiser is available through CFS's FirstChoice platform and is designed to work alongside a planned CFS lifetime pension offering, which is expected to be introduced in 2027.

The feature operates while members are building their super and does not require changes to their existing investments, fees, insurance, account features or contribution strategies.

Under current rules, when Retirement Income Optimiser is active, Centrelink can assess a calculated balance based on deemed investment earnings rather than the member's actual balance and returns. CFS said the calculated balance may be lower, potentially increasing Age Pension entitlements once an eligible CFS lifetime pension begins, depending on individual circumstances.

The potential impact may also increase the longer the feature remains active.

CFS superannuation chief executive Kelly Power said retirement income planning should begin before members enter retirement.

"One of the biggest concerns Australians have is whether their savings will last throughout retirement. Retirement Income Optimiser gives eligible members a way to prepare for future lifetime income options while retaining flexibility over their super today," Power said.

Eligible FirstChoice Wholesale Personal Super members will have the feature switched on automatically, with the option to opt out at any time, while eligible FirstChoice Employer Super members can choose to opt in.

For advisers, CFS said the feature provides an opportunity to begin retirement income discussions earlier and consider accumulation, future income needs and Age Pension outcomes altogether.

"Retirement is not a single decision made at one point in time. By giving members more options before they retire, we can help them approach those decisions with greater confidence and support advisers in delivering advice that reflects each client's circumstances," Power said.

Retirement Income Optimiser forms part of CFS's broader retirement strategy, following the introduction of CFS Pension Bonus in August ahead of further retirement income solutions planned for 2027.