ASFA, the voice of super, welcomes Treasurer Jim Chalmers’ announcement of a suite of reforms aimed at delivering better retirement outcomes for Australians, announced today at the second day of the ASFA Conference.
These reforms represent a step forward in ensuring Australians not only save for retirement but also have access to the tools and products they need to make the most of their super.
Superannuation is the critical, universal pillar in our retirement income system – delivering annual retirement benefits that are double those of the Age Pension ($109.6 billion v $54.7 billion, according to APRA). The Intergenerational Report notes that by 2035, Australia will have the lowest public spending on the Age Pension by GDP of all 38 advanced economies in the OECD. The time is right to improve the policy settings and grow innovation in the retirement offerings for members.
By focusing on both guidance and innovation, the Government is helping to ensure that superannuation funds can better meet the diverse needs of retirees.
The measures, designed to improve the experience of retirees, include:
- Enhanced consumer guidance via Moneysmart, with a focus on retirement options.
- Changes to income stream regulation and innovation in retirement products through features like money back guarantees and instalment payments (rather than upfront lump sum payments).
- Voluntary principles and best practices for retirement product design.
- A new retirement outcomes reporting framework to commence in 2027, with APRA and ASIC delivering a pulse check report by the end of 2025 to assess trustees’ progress under the Retirement Income Covenant.
ASFA especially welcomed the focus on improving consumer education and guidance, which will help increase fund members’ engagement with their super.
“Improving consumer education is key to helping Australians make informed decisions about their retirement. Clearer guidance and tools like Moneysmart will empower fund members to engage more actively with their super, ultimately leading to better retirement outcomes. Super funds have shouldered a lot of the responsibility for educating Australians – we welcome an increased effort from the Government in this area because it is so important in helping people make good decisions,” said ASFA CEO Mary Delahunty.
“ASFA is pleased to see the Government’s commitment to ensuring tangible retirement outcomes for Australians. These reforms build on the Retirement Income Covenant, providing greater confidence in the value that superannuation delivers,” added Ms Delahunty.
ASFA will engage closely with Government, regulators and members to ensure the framework reflects the needs of superannuation fund members. ASFA will work to ensure that changes to reporting obligations are practical and additive to our system as sector participants already have enormous reporting requirements.
“As the umbrella peak body for super, ASFA is dedicated to representing the industry and advocating for measures that help Australians retire with dignity. We look forward to supporting these initiatives to ensure retirees achieve meaningful outcomes and a dignified retirement,” Ms Delahunty said.
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
