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The Retirement Income Covenant

A Trustee Checklist

The Retirement Income Covenant encapsulates a decade of thought around the topic of income in retirement. The Covenant aims to provide funds with flexibility to design and tailor their retirement income strategy to meet the needs of their specific membership now and in the future. It sets out some key requirements and opportunities for trustees to consider.

Although not yet law, the Retirement Income Covenant requires trustees toformulate, review regularly and give effect to a retirement income strategy for beneficiaries who are retired or approaching retirement. The retirement income strategy needs to help members achieve and balance three objectives:

  1. Maximising their expected retirement income
  2. Managing expected risks to the sustainability and stability of their expected retirement income and
  3. Having flexible access to expected funds during their retirement.

Once passed, trustees of an RSE are required to formulate their retirementincome strategy by 1 July 2022. This checklist aims to support trusteesin formulating their strategy.


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