23 February, 2024
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Superannuation access for retirees goes under spotlight

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Australians are being asked to have their say on the superannuation and retirement income system, as the federal government considers ways to reform the compulsory savings regime.

Treasurer Jim Chalmers has released a discussion paper and is seeking community and industry views on three key areas.

These include ways to support members navigating the system, how to help funds deliver better products and services, and how to make lifetime income products more accessible. 

“More Australians are looking to their super to play a greater role in providing for their retirement,” Dr Chalmers said in a statement.

“We want to ensure super delivers on its foundational promise of providing a dignified retirement for more Australians.

“There’s a clear need for better information, support and well-rounded income products to help retirees make the most of their super.”

 Jim Chalmers says more needs to be done so retirees understand their options. Image by Mick Tsikas/AAP PHOTOS 

The number of retirees with a super account is expected to double over the next decade, with 2.5 million Australians set to retire. 

Almost 85 per cent of super is held in account-based or allocated pensions, while 3.5 per cent is held in annuities that offer the option of receiving regular payments for life.

The main concern amongst retirees is whether they will have enough money in retirement, or if they risk outliving their savings.

Dr Chalmers said more needs to be done so retirees understand their options.

“We also recognise there is a role for government and regulators in creating an environment that supports these changes,” he added. 

Submissions for the discussion paper, which is available on the Treasury website, are open until February 9.

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