The federal government wants superannuation funds to put more effort into assisting members in the retirement phase of super.
Federal Treasurer Jim Chalmers says it is the “next frontier”.
The $3.5 trillion super sector was chided by regulators recently for failing to understand their customers and Dr Chalmers has flagged problems with financial advice, customer service and retirement income strategies.
“Half of retirees draw down the minimum and, on average, people who draw down the minimum will still have about a quarter of their super remaining when they pass on,” he told an annual superannuation lending roundtable.
The Retirement Income Covenant and the 2023 Intergenerational Report have only added to the pressure on funds, with the latter estimating the proportion of people with accounts in the retirement phase of super will increase from 8 per cent in 2022-23 to 19 per cent in 2062-63.
Add in the fact that too many retirees are living more frugally than they need to, and inheritances are projected to jump dramatically. Blame longevity risk, which is one of those factors that almost requires a crystal ball.
Treasury wants super funds to incentivise spending, improve retirement income products, boost communication with members and offer more guidance.
But what do you want? Have your say by answering the following questions in our Flash Poll. (Please keep answers to no more than 100 words.)
Too many union and political (Labor) hacks get plum jobs in the industrial superannuation funds. The industry funds are used for political gain by putting pressure on companies in which they invest. They have been hijacked by the union movement and the socialists. They certainly don’t work in the members interests.
Most folks have no idea about their superannuation. It’s part of their salary or wages they don’t see. They trust their employer o put the money into a fund. Many do not bother to question or redirect.
The ATO needs to tighten up on collection and investment of superannuation. Too many small companies don’t pay superannuation into a fund and then go bust.
“Too many union and political (Labor) hacks get plum jobs in the industrial superannuation funds. The industry funds are used for political gain by putting pressure on companies in which they invest. They have been hijacked by the union movement and the socialists. They certainly don’t work in the members interests.”
What a lot of rubbish.
” . . . too many retirees are living more frugally than they need to, and inheritances are projected to jump dramatically.””
Whose money is this? The governments? Danielle Wood seems to think it is the Government’s money, to be seized at will (of the govt).
I dare them . . . anyone who thinks they can screw the population by seizing superannuation is not planning to win an election.
If people want to “live frugally”, that’s their business, not the government’s or the public service’s. Perhaps we could say that the Public Service is paid too much, and salaries should be reduced???
This would be opening a huge “can of worms”, which would cost political reputations, jobs and create anger.
There is an assumption in this, that government and public servants know better how to spend peoples’ money than the people themselves.
When I joined the ADF we had the Defence Force Retirement Benefits (DFRB) Scheme. The Whitlam Gov’t with it’s ‘Supply’ crisis subsequently closed the untaxed DFRB Scheme:
a. moved (Stole) the residual funds into consolidated revenue; and
b. created the Taxed DFRDB Scheme for the ADF.
There is no way that I would accept any further Taxation on my DFRDB Pension.
Hi,Treasury just don’t get it cos they have a set of skills in a particular area and
Live in a financial bubble.
However cabinet Ministers should be reflecting a wider view.
Again because of the strength of Treasury common sense does not get a voice at the table.
In Aged care too many Ministers and too little practical experience and Treasurer controls the arguement.
I want superannuation fees to be more visable.
I also want the Superannuation industry to get a seat at the table of the Minister wells Committee looking into Agedcare Funding.
They have apparently formed a new Industry Association but the senior people are all associated with the current Governments left wing ideology.
Cheers