Superannuation reforms: 3 big changes every Aussie needs to know
The Australian government is planning big changes to the superannuation system and has issued a consultation paper asking for everyone's ideas on how to improve the system’s ‘retirement’ phase.
The retirement phase is exactly what it sounds like: it’s the transition from working life to retirement and is distinct from the ‘accumulation’ phase where you add to and grow your super.
In other words, the government thinks the system can do a better job making sure you can access and use your funds during your retirement.
Chief of the Council of the Ageing (COTA) Australia, Patricia Sparrow supports this development, emphasising the necessity of a robust system: “Every Australian deserves a strong superannuation system that provides for a dignified retirement.”
Here’s a breakdown of the potential reforms and what they could mean for you and your super:
The Big 3: Understanding the Superannuation Reforms
The proposed changes cover three main areas. These are:
- Simpler system navigation. The government wants a more straightforward and user-friendly experience. You can expect clearer information and better guidance, along with tools like calculators and projections.
- Better fund offerings. The government wants to create an environment where funds are incentivised to offer newer and better products, giving you more choice. It also seeks more transparency so you can compare options more easily.
- Easier access to lifetime income products. The reforms aim to make retirement income options, like annuities, more accessible and affordable, ensuring a stable income in retirement.
Have Your Say
This is your chance to have input on this process and potentially help to steer the government’s policy changes. So why not take time to make your voice heard?The consultation paper is designed to be user-friendly, with prompts to help you frame your responses, as well as examples of how some of the proposed reforms might work.
Tips to navigate upcoming superannuation reforms
Here are some helpful tips to help you prepare for any upcoming changes:
- Stay informed. Regularly check for updates about the superannuation reforms by checking government sites like the Department of Treasury, the ATO, or the ASIC.
- Review your superannuation. Periodically review your super including balance and asset allocations to ensure it’s in line with your retirement goals.
- Consider seeking financial advice. Talking to a financial advisor can be very useful and may be able to offer advice tailored to these and any other upcoming reforms.
- Participate in the consultation process. Sharing your feedback is a great way to get your voice heard and potentially influence your future retirement savings.
- Educate yourself. Use available resources to learn more about retirement planning. Mozo’s superannuation guides hub is a great place to start.
These tips are meant to guide you in engaging with the changes in the superannuation system, ensuring you’re ready for the reforms and their impact on your financial future.