Rest responds to the Retirement Income Review Consultation Paper

Rest is passionate about improving the retirement outcomes of Australians.
 
Rest believes that the Australian superannuation system has worked well during its first three decades and generally continues to do so. The compulsory Superannuation Guarantee has provided a much-needed source of retirement funding. As a significant number of Australia’s workforce now reaches retirement, many people have had access to close to 30 years of Superannuation Guarantee payments. This makes a significant difference to the lives of retired people.
 
The achievements of the compulsory superannuation system, particularly for lower-income Australians, cannot be overstated. Even for members who retire with an account balance lower than retirement adequacy standards, having access to a lump sum or superannuation pension can provide them with valuable security and an ability to plan and manage this stage of their lives. Before compulsory superannuation, these workers typically had no income in retirement beyond the Age Pension.
 
However, as we near the 30th anniversary of compulsory superannuation, it is clear the system must adapt to the emerging economic and demographic trends in Australia, or risk entrenching inequality.
 
Retirement outcomes have been – and will continue to be – impacted by a number of factors. These include the increase in part-time and casual work as the ‘gig’ economy grows, rising debt levels, and persistent barriers that prevent people, particularly women and those on lower incomes, from achieving economic security. These factors are exacerbating the inequality of experiences among people in the retirement income system.
 
The profile of Rest members gives us the opportunity to particularly understand the superannuation and retirement experiences of casual, part-time and lower-income workers, women and those in regional Australia.
 
Our submission provides insights into the experiences of our unique member base and contemplates the impact and implications of the broad changes in how Australians work and retire.
 
To access the submission, click here.