Government reforms aim to improve retirement support for Australian seniors
As the superannuation industry has focused on helping us watch our balances (hopefully) grow into enough to retire on, the government has realised it’s been overlooking the people the system is ultimately for: those who are already retired and need help navigating retirement and managing their hard-earned savings.
This week, the Department of Treasury announced a set of reforms to improve the ‘retirement phase’ experience for retirees.
The four-point plan includes:
- Better guidance. Updates and additions to the resources on the Moneysmart website to better support retirees in understanding their options.
- Better products. New legislation to give super funds more flexibility in creating income stream products with features people want.
- Best practices. A voluntary set of principles to guide super funds in improving their offerings for retirees.
- Increased transparency. From 2027, funds will need to report annually on retirement-phase outcomes, ensuring more accountability.
As we’ve reported before, the high cost of living is forcing many seniors to rethink their retirement plans, injecting a lot of uncertainty into their financial future.
The Council of Australian Life Insurers (CALI) agrees.
“This is a big win, especially for the five million people who are currently in, or preparing for, retirement,” said CALI chief, Christine Cupitt.
“We have more retirees than ever before, living longer and spending more time in retirement. These Australians need choice, control, and certainty when it comes to managing their finances,” she said.
CALI was one of many organisations that responded to a consultation paper last December, where the Department of Treasury outlined its concerns and sought feedback from interested parties.
The new reforms have grown out of this ongoing dialogue and the submissions received during the process.
New resources are set to roll out in the first half of 2025, after which the Treasury will reopen the consultation process to gather feedback on these changes.
If you’re at or nearing retirement, it’s worth brushing up on concepts like transition-to-retirement strategies and withdrawal options. You can find these explained in our guide to accessing your super.
Or, head to our superannuation guides hub for more insights on super and retirement-related topics!
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