The challenge of addressing retirement income adequacy presents a huge opportunity for financial planners, according to Harry N. Stout, chief executive officer of ING Australia.
Stout predicts an increasing demand by Australians for retirement security products which guarantee minimum levels of income in the years ahead.
Such solutions are already gaining traction in places like the US, Japan, Northern Asia and in Europe, to meet the needs of ageing populations, he adds.
“I believe these products will establish the foundation of a new opportunity for financial advisers to assist consumers increasingly looking for income protection products that provide security throughout the stages of retirement,” Stout told an Investment and Financial Services Association (IFSA) member luncheon in Sydney early November.
“Once the current turmoil in global financial markets has subsided, we believe there will be a demand for products that provide certainty and stability right throughout an individual’s retirement years.
“As I said to Ken Henry from the Treasury only last week, even in an optimistic culture such as Australia, our customers’ immediate focus has changed from seeking a return on their principal to a return of their principal.”