“This task will become increasingly important with the number of Australians aged 65 and over projected to more than double by 2054-55,” he said.

Mr Frydenberg said that as the superannuation system matures, it is important Australia helps individuals achieve higher and more stable retirement incomes.

“This will require innovation on the part of industry to develop solutions to meet the needs of consumers, signs of which are already occurring,” he said.

“It will also likely require new thinking on the part of government and regulators.”

The FSI recommended that trustees of APRA-regulated funds facilitate the provision of ‘comprehensive incomes products for retirement’ to retirees.

“This would require changes to the rules that currently discourage financial products which can help manage longevity risk and improve overall retirement income,” he said.

The government has been reviewing these rules over the past year and is confident its response to the FSI will encourage product innovation in this area that will benefit consumers, Mr Frydenberg said.