Retirement Incomes Review
In 2019 the Treasury announced a review into the retirement income system. This was recommended by the Productivity Commission in its report Superannuation: Assessing Efficiency and Competitiveness. The final report (648 pages) provides a fact base of the current system and to improve understanding of the operation of the system and the outcomes it delivers to Australians.
Superannuation is not being used efficiently in retirement
Key findings were numerous. It is clear the review found that superannuation is not being used efficiently in retirement. For retirement products, key findings include:
The retirement income system is complex
There is a need to improve understanding of the system. People need better information, guidance and good, affordable advice tailored to their needs. A major misunderstanding is that ‘retirement income’ involves the returns from investing superannuation blanaces rather than drawing down those balances to fund living standards in retirement.
What constitutes an ‘adequate, equitable, sustainable and coherent’ retirement income system needs to be clear and preferably legislated.
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