CFS launches Retirement Income Optimiser to help members make more of their super in retirement

Colonial First State (CFS) has launched Retirement Income Optimiser, a new FirstChoice feature designed to give eligible members greater flexibility in how they generate income from their super in retirement.

The feature works in the background while members build their super and is designed to work with a future CFS lifetime pension, planned for introduction in 2027, without changing their current investments, fees, insurance, account features or contribution strategies.

Under current rules, while 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. This calculated balance may be lower, potentially increasing Age Pension entitlements once an eligible CFS lifetime pension begins. The longer the feature is active, the greater the potential effect.

When used with the planned CFS lifetime pension, Retirement Income Optimiser may result in higher overall retirement income, including through improved Age Pension outcomes, depending on a member’s individual circumstances.

CFS Superannuation Chief Executive Officer Kelly Power said retirement income planning needs to begin before members make the transition into 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,” Ms Power said.

Eligible FirstChoice Wholesale Personal Super members have Retirement Income Optimiser switched on automatically and can opt out at any time. Eligible FirstChoice Employer Super members can choose to opt in.

For advisers, the feature provides an opportunity to start retirement income conversations earlier and connect accumulation planning with future income needs and Age Pension considerations.

Ms Power said connecting accumulation and retirement planning earlier can help members make more informed decisions when they are ready to move into retirement.

“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.”

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