Reports & research

Development of the framework for Comprehensive Income Products for Retirement (CIPR)

Recently, the Government agreed to support the development of more efficient retirement income products, and to facilitate trustees offering these products to their members. Labelled as 'Comprehensive Income Products for Retirement’ (CIPR), the Government has released a discussion paper that explores the key issues in developing a CIPR framework. 

In our report, we provide a comprehensive response to the Government’s discussion paper, including an alternative recommendation. 

As those who have reviewed the Government’s CIPR discussion paper will know, the framework seeks to address four implied problems that occur in retirement. These problems involve when individuals are:

  • self-insuring against longevity risk
  • facing a lack of diversity and choice in retirement income products
  • over-relying on account-based pensions which reduces the superannuation system’s efficiency
  • facing complex financial decisions and a lack of guidance. 


In our responses to the questions the Government’s discussion paper poses, we elaborate on these four problems and highlight some of the important social and psychological dimensions of retirement, which are not addressed within the scope of the proposed CIPR framework by the Government.

Most notably, the Government’s discussion around CIPR is based on assumptions that future societies will reflect that of the past, however, we believe that a sensible discussion about life at an older age cannot ignore topics including:

  • the meaning of work in life
  • the concept of retirement as entitlement
  • wealth outside of superannuation
  • family wealth and assets versus individual savings
  • tax complications and disincentives
  • the interaction of the age pension and superannuation (and potential future reforms)
  • the different stages of retirement, which triggers different levels of income for each individual.

The recommendations we make in this submission draw on insights from the retirement income structures of other countries, including the pros and cons of these structures, based on Aon Hewitt’s experience and involvement within the global retirement solutions space.

Download our report ‘Development of the framework for Comprehensive Income Products for Retirement (CIPR)’ to read our full response to the Government’s discussion paper. To discuss what this means for you and your organisation, please contact us.