CFS introduces Retirement Income Optimiser feature
Colonial First State (CFS) has rolled out a new superannuation feature that could affect how Centrelink assesses eligible members’ balances before they begin receiving an eligible CFS lifetime pension.
The Retirement Income Optimiser has been integrated into the FirstChoice platform as part of CFS’s preparations for its upcoming lifetime pension product, set to launch in 2027.
While the feature operates during the accumulation phase, Centrelink can assess a calculated balance while the optimiser is active, using deemed investment earnings instead of the member’s actual balance and returns. That calculated balance may be lower than the member’s actual balance, potentially improving their Age Pension entitlement after they begin receiving an eligible CFS lifetime pension.
CFS notes that the potential benefit grows the longer the optimiser remains in use, though individual outcomes will vary based on personal financial situations.
The feature does not modify existing investments, fees, insurance coverage, account settings, or contribution approaches for members.
Speaking on the development, CFS superannuation CEO Kelly Power emphasized the importance of initiating retirement planning before exiting the accumulation phase.
Read Also: AI spending boosts corporate debt issuance
“One of the biggest concerns Australians have is whether their savings will last throughout retirement,” Power said. “Retirement Income Optimiser gives eligible members a way to prepare for future lifetime income options while retaining flexibility over their super today,” Power said.
Eligible members of the FirstChoice Wholesale Personal Super fund will have the optimiser activated automatically, although they can opt out at any time. Eligible FirstChoice Employer Super members will instead be able to opt into the feature.
Power suggested the tool bridges the gap between accumulation and retirement phases, enabling members to make better-informed choices ahead of their transition.
“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,” Power said.
The move follows CFS’s August launch of the Pension Bonus and precedes additional retirement income solutions planned for 2027. Earlier this year, CFS announced a ‘landmark’ partnership with Challenger, Generation Life, and BlackRock to deliver its most full, whole-of-life retirement income and wealth management solution.
