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Older Australians will be able to use their retirement savings more effectively under a government push to improve the quality and transparency of superannuation.
The federal government will improve resources on its financial advice website Moneysmart and bolster regulations around innovative income streams, which will give super members more options.
The superannuation industry will also be subject to a new set of voluntary best practice principles to improve the quality of their offerings, while a new reporting framework will allow retirees to see how their super products are performing and compare it to others.
Many Australians have been focused on how their super accumulates money, but Treasurer Jim Chalmers says the retirement phase will become increasingly important as the population ages.
“The superannuation system is reaching a pivotal moment,” he will say in a speech to the Association of Superannuation Funds of Australia on Wednesday.
More than 2.5 million people are expected to retire across Australia within the next decade and the withdrawals from super are expected to increase from 2.4 per cent of GDP to 5.6 per cent over the next 60 years.
“We have a goal … to ensure super delivers on its foundational promise of providing a dignified retirement for more Australians,” Dr Chalmers said.
The government has already passed laws to give new mums and dads a superannuation boost on their government-funded paid parental leave.
Kat Wong
(Australian Associated Press)
