In a move to capture the growing dependence of superannuation strategies by investors, Russell Investment Group has released a combined superannuation and pension offering.
The new offering, Russell Private Active Pension, was released in response to the Government's new superannuation taxation arrangements and is the last of Russell's private series.
Russell's director of actuarial benefits and consulting Steve Schubert said the new pension account also comes at a time of increased growth in superannuation investments.
Schubert said the majority of Australia's $1 trillion in superannuation investments is expected to rise, with Russell predicting super investments held by investors aged 65 will increase more than 40 per cent in the next 30 years.
He said the main driver behind the increase will be the Government's new superannuation rules which allow money to be left in super for longer, and by far-reaching demographic change which will see the proportion of the population aged 65 or more grow to a staggering 25 per cent.
The joint super and pension account comes at a significant time for advisers, Russell managing director of retail investor services Chris Corneil said.
"We are clearly hearing from planners that whilst the new simple super system is designed to be simple in theory, in reality the concept of a traditional retirement has changed and therefore the situation, and advice needed, is far more complex," Corneil said.
Corneil said both advisors and investors were also demanding simpler and more competitive fee structures.
The new pension offering is the last of Russell's private series. It allows members to make contributions and receive payments from a single account, bringing a pension plan more towards a traditional bank account.
The Russell Private Active Pension will be available from 1 July. Earlier this week independent research house Chant West awarded the Russell Private Active Pension its highest '5 Apples' rating.
Russell Investment Group has more than A$250 billion in assets under management worldwide.
