Treasurer Josh Frydenberg has commissioned a review to investigate how effectively the retirement income system is working to support Australians now and into the future.
The Review will examine the three pillars of the retirement income system – the Age Pension, compulsory superannuation, and voluntary savings – and how they work together to provide an adequate retirement for Australians. It will also look whether the system will provide an adequate retirement in the future and whether it will fiscally sustainable.
The review will establish a fact base from which the Government and industry can implement any improvements.
Rest welcomes this review and intends to support the panel in establishing facts that will lead to improved retirement outcomes for Australians.
Since 1992, Australia’s Superannuation Guarantee system has developed into a world-class retirement savings scheme. While the Australian superannuation system is working incredibly well, there have been some fundamental and important changes in the way Australians work and in how we approach and plan for retirement.
We recognise the importance of empowering people with the information they need through access to affordable financial advice to make informed decisions about their retirement future.
These are some important areas we believe the Review should consider:
- Identifying barriers to women, particularly women in regional areas, in achieving financial security in retirement.
- The impacts of home ownership versus non-home ownership on retirement adequacy, especially for those on lower incomes.
- The impacts of Australia’s changing workforce with the rise of the gig economy, as more Australians hold multiple jobs.
- Barriers to the provision of affordable and flexible financial advice through superannuation.
- The continuing importance of group insurance in ensuring retirement adequacy.
We look forward to working with Government and the industry to help bridge the retirement income gap for women. We believe the review can play a valuable role in helping to ensure the superannuation system supports those who work in more than one job, and for people who rent as well as for those who own their own home.
A consultation paper will be released in November 2019 and the final report provided to the Australian Government by June 2020.