Account-based pensions
In most superannuation funds, retirees are offered an accountbased pension with a smorgasbord of investment choices that are similar to the accumulation phase. On offer are diversified options: conservative, balanced, growth and high growth.
There is a mix of asset classes and direct shares and term deposits, so that retirees can design their own investment mix, like a self-managed superannuation fund.
Account-based pensions are popular for lots of good reasons, explains Mercer’s David Knox. “They are like a reverse bank account. The investments generate investment earnings and retirees draw down on the regular income. They
