Delivering better retirement outcomes a crucial goal for Australia

4 December 2023

Delivering better retirement outcomes a crucial goal for Australia

The wide-ranging discussion paper released today by the Government on retirement outcome policies and practices has the potential to remove regulatory impediments for innovative retirement income products and to deliver better retirement outcomes for Australians, according to the Association of Superannuation Funds of Australia (ASFA).

“The take up of retirement income products offering protection against the financial consequences of longevity has been modest to date,” said ASFA Interim CEO, Leeanne Turner.

“What is needed is the removal of any remaining regulatory barriers to the development of such products.

“Regulatory settings regarding provision of advice and guidance in regard to retirement income products need to be supportive. This includes settings and mechanisms for the gathering of relevant information about the personal circumstances of those approaching retirement. Defaults, nudges and advice only work if the retirement products involved are suitable for their target market and the individuals taking them up,” Ms Turner concluded.

Accordingly, the needs of consumers must be paramount in the development of regulatory settings and in the design of retirement products.

ASFA also recognises that many Australians still have only a modest superannuation balance at retirement and totally exhaust their superannuation before they die. Policy measures advocated by ASFA – such as Superannuation Guarantee contributions on paid parental leave, a superannuation baby bonus, and an increase in the upper threshold for the low-income super tax offset – aim to address the retirement savings gender gap and increase system equity.

Lifting retirement balances for future retirees remains a crucial goal for funds and government.

ASFA will be consulting with its members and providing a submission to the Treasury in regard to the Discussion Paper.