Balancing super and the age pension
Australia needs to move from a situation where superannuation supports the age pension to one where the age pension supports superannuation, according to the Institute of Actuaries of Australia.
The institute, which is holding a policy forum dealing with superannuation today in Sydney, noted that the transition to a mature superannuation guarantee system would shift the super/pension balance.
But it said the age pension would continue to be an important source of income for median income earners and average income workers.
“It will also support the retirement income of higher income earners during the transition to a mature retirement income system,” the institute said.
The convenor of the institute’s superannuation and employee benefits practice committee, Andrew Boal, said the industry had to do more to help people make key decisions — such as how much to save for retirement.
“We need to improve member awareness about adequacy, including how their superannuation interacts with the age pension,” he said. “To do this, we can use tools like annual projection statements and online calculators to educate them about whether or not they are on track to meet their retirement expectations.
AUTHOR
Mike Taylor
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
