From smallcaps.com.au: A new government discussion paper proposes mandating that superannuation funds invest retirees’ savings in annuities, aimed at ensuring sustainable income and reducing the risk of retirees outliving their savings.

Annuities, however, are often criticized for their inflexibility, lower returns, and limited residual funds for heirs, which may undermine retirees’ confidence in superannuation as a retirement savings vehicle.

The discussion highlights concerns about personal choice, with fears that mandatory annuities could restrict retirees’ ability to access funds as needed.