ASFA

Fresh research explains how a lifetime income product, combined with an allocated pension, could mean those on the cusp of retiring will require much smaller superannuation balances than ASFA’s recommended targets.

Industry funds played a deft hand when the bulk of their members were in the accumulation phase. With members now retiring in growing numbers, a new skill set is urgently needed – and the reforms to overhaul the decumulation phase announced by Treasurer Jim Chalmers could help.

Sharp market downturns can play havoc with those in retirement who must draw down on their savings and have less capacity and time to wait for their investment portfolios to recover.

Saying the plan to double the tax rate on super balance amounts exceeding $3 million will improve the sustainability of Australia’s retirement system, the peak industry body nonetheless called for careful retooling of aspects that it says could lead to inequity.