ISBN 978-1-923088-73-3

Retirement Income for Life

Solving the longevity equation

A guide for financial planners

It’s a brand-new world of retirement planning in Australia and this ground-breaking book supports financial planners to empower their clients to manage longevity risk with a lifetime income strategy that seamlessly blends the best of new and traditional retirement products. Written by an elite team of experienced actuaries, superannuation and retirement experts this book introduces a new breed of retirement income streams to help provide Australians with the long-term security they need.

*All the information and calculations are current at the time of writing.

David Orford self-published author

About the Authors

David Orford

David has enjoyed a long career in financial services as an actuary to 4 life insurers, 12 friendly societies and several superannuation funds. He was also the founder of Financial Synergy, which grew to become Australia’s leading provider of superannuation administration software before being acquired by IRESS in 2016. Throughout his career, David has worked towards his personal mission to help Australians lead a comfortable retirement and now devotes his time to researching and creating innovative retirement solutions and directing The Orford Foundation. David has made several submissions focussed on the provision of retirement incomes to financial systems inquiries and strongly believes “The objective for our country should be to provide every citizen in their retirement with an income stream which lasts for the rest of their life.”

Peter Rowe self-published author

Peter Rowe

Peter has spent over 30 years in senior management roles in the superannuation industry, covering a wide range of functions, including administration, finance, investments, members services, IT and Systems. He has had extensive experience with both defined benefit and accumulation plans that included lifetime pensions and account-based pensions as well as a variety of other income products. Peter’s experiences advising retirees, and deep knowledge of the financial services market supports his current passion to increase the use of the new range of lifetime retirement income streams to benefit all Australians.

Jim Hennington self-published author

Jim Hennington

Jim Hennington is an actuary who has spent 30 years working in superannuation, financial planning and retirement software both in the UK and Australia. With over 10 years’ experience as a director of licenced advice firms, Jim has built a strong track record applying actuarial thinking to the personal planning space. A thought leader and financial services innovator, Jim specialises in retirement incomes and advice technology, and was part of the team driving the design and modelling tools to launch Optimum Pensions products to superannuation funds, financial planners and retirees. Jim works tirelessly to educate financial planners and others about longevity risk. He is skilled in unpacking wordy and complex legislation, and he has written landmark papers for Actuaries Institute of Australia, dealing with how to fairly project retirees’ income, expenses etc into the future.



“Compared to many professions, financial advice as it is becoming, is relatively new. Founded by a combination of broking, accounting, insurance, and legal, combined with a world class superannuation system, the proposition of the adviser continues to evolve, moving from ‘below the line’ (money, products, investments etc) to ‘above the line’ (advice and strategy to help people make smart decisions about money) – or, as I say, from product to people, and from money to meaning.

As our population ages and accrues wealth, conversations shift from accumulation of assets to the focus on retirement planning and the strategic advice provided to prospective retirees. People are living longer, which means that their retirement savings may well need to last longer. Retiring with confidence is important.

As the industry evolves and the profession emerges, visionaries and leaders find solutions out of problems and black spots. Until recently, financial advisers have had to deal with the deck of cards they have. Concerned about fixed term or lifelong annuities, advisers have tended to focus on retirement solutions on account-based pensions (ABPs). The issue with traditional solutions has been loss of capital due to premature death (in the case of annuities), or expiring well after your money does (in the case of an accountbased pension).

Well, retirement planning in Australia has entered a new world with a number of lifetime income options. Efficient and effective investment-linked and Group Self Annuitised (or GSA) lifetime annuities have only become available after legislation has made it possible to invest superannuation money into these products in 2017.

These new products offer “longevity insurance” like guaranteed life annuities, but without locking in low investment returns, and allow the same investment choices as superannuation members have enjoyed through ABPs. By intergenerationally transferring the balances of members who pass away to survivors, they allow the survivors to enjoy a much higher standard of living at a lower risk of running out.

I believe the advice proposition of the future is moving to adviser, coach, educator, mentor, project manager. Combining strategies to increase income, decrease expenses, reduce taxation liabilities, protect assets, ensure security in any catastrophe – in order to achieve all that’s important to them and to live their best possible life… People want to live their best, with confidence. They want to live rich, not to die rich.

I commend the work of David, Peter, Jim and their team in the vision and leadership they have shown to painstakingly drive this necessary and important change into our market, for the betterment of current and future retired Australians.

Important reading for any serious financial advisor in Australia.”

David Haintz
AM Principal
Global Adviser Alpha Pty Ltd

“This book is a must read for planners throughout Australia. David Orford and his team have been trail blazers in the area of lifetime annuities. Their knowledge is extensive.

This is the new emerging market and those who embrace it will be well rewarded as indeed will their clients with peace of mind and a better quality retirement.

I have always been interested in this product solution as I believe that it is in a retiree’s Best Interests to include in their retirement plan, particularly for those poor at budgeting or with relatively low retirement assets and who qualify for the Age Pension.”

Peter Hawks
Annuity Brokers of Australia P/L

“Retirement planning in Australia has entered a new world. The time is therefore ripe for this book, which explains the new opportunities for planners and their clients.
New SIS regulations introduced in 2017 makes it possible to invest superannuation money into a wider range of new product categories. Favourable changes to the Age Pension Assets and Income tests were later introduced to encourage the use of certain product types. Although new products have taken time to make it onto the market, they are now appearing in approved product lists.

By using the new range of products, often in conjunction with existing products, your clients can spread some or all of their financial capital over their own indeterminate lifespan. They provide an income that can meet their spending plan. For your clients, it can be the financial magic pudding – although it will not outlive them.

It may be difficult to believe that regulatory changes can offer new opportunities – but in this case they do. I can recommend the book to everyone who wants to take advantage of the new possibilities for the benefit of their clients. Welcome to a whole New World.”

Dr Anthony Asher
Associate Professor, School of Risk and Actuarial Studies,
University of New South Wales (UNSW)
Convenor of the Actuaries Institute Retirement Income Working Group

The views expressed above are personal and do not necessarily reflect those of UNSW nor of the Actuaries Institute.