As a result, from 1 July 2017 the government intends to extend the tax exemption on earnings in the retirement phase to products such as deferred lifetime annuities and group self-annuitisation products.

The government intends to consult on how these products will be treated under the age pension means test.

“Rules and regulations currently restrict the development of new retirement income products,” the government said.

“These products could provide more flexibility and choice for Australian retirees, and help them to better manage consumption and risk in retirement. They can be of particular benefit for those who are concerned that they might outlive their superannuation fund savings,” the government said.