The Australian Institute of Superannuation Trustees (AIST) has welcomed today’s release of the terms of reference for the Retirement Incomes Review.
AIST CEO Eva Scheerlinck said it was pleasing that the terms of reference for the review were sufficiently broad to enable the Review’s Commissioners to conduct a thorough examination of Australia’s retirement income system.
“The review provides an important opportunity to evaluate how Australia’s retirement income system is tracking and what reforms may be needed to ensure the system is both equitable and sustainable over the long term,” Ms Scheerlinck said. “Australia’s population is ageing, people are living longer and more people are entering retirement with debt or without the security of a home. The system needs to accommodate these challenges.”
Ms Scheerlinck said while already legislated reforms, notably lifting the Super Guarantee to 12 per cent in 2025, would significantly improve the adequacy of retirement incomes for all Australians, the Review was an opportunity to examine how the current policy settings might be changed to deliver better outcomes for vulnerable Australians.
“While Australia’s retirement income system is delivering for most of us, many Australians are still retiring in poverty. We hope that the Review has a sharp focus on how we can improve retirement outcomes for the vulnerable, low income earners and women, who still retire with less than half the super of men,” Ms Scheerlinck said.
Ms Scheerlinck said it was important that the Review re-examined how the Age Pension interacted with the super system and whether the tax concessions could be better targeted.
Ms Scheerlinck said AIST looked forward to contributing to the Review and working with the Commissioners, Mr Michael Callaghan, Ms Carolyn Kay and Dr Deborah Ralston.