Australia: Actuaries support shift in superannuation policy focus to retirement
Source: Asia Insurance Review | Mar 2024
The Actuaries Institute has identified barriers that must be overcome as the focus of superannuation policy development moves more strongly to support Australians in their retirement.
The institute was giving its views in a submission to the Treasury in a consultation exercise on improving the experience and outcomes for superannuation fund members in the retirement phase.
The institute said that it supports the government’s shift in policy focus. Superannuation policy settings to date have focused on the accumulation stage. But larger groups of Australians are now moving into the retirement phase.
The most fundamental barrier to overcome is shifting the national mindset around superannuation from being a ‘nest egg’ to one of generating income – one that can support the varied needs of Australians in their retirement years.
A critical part of the solution, and in line with top-ranking pension systems globally, is making sure superannuation has pathways that help nudge people towards well-rounded default solutions for funding retirement. But notions of “a standardised product” need to be approached with care.
The institute also supports the government taking bold steps on population-wide financial literacy and retirement phase guidance and education. This includes recommitting to the National Financial Capability Strategy and introducing standard definitions for the features of retirement income products. A