AUSTRALIA | The release of the Federal Government's Retirement Reporting Framework has garnered the support of COTA Australia.
COTA Australia has welcomed the release of the Federal Government’s Retirement Reporting Framework and Best Practice guidance, which recognises that retirement is not one-size-fits-all and that Australians move into and through retirement in different ways.
COTA Australia Chief Executive, Patricia Sparrow, said not everyone retires the same way, and the superannuation system needs to support the diversity of older Australians and their retirement income needs.
“The shift from lump sum balances to annual and pay-cycle income projections and the requirement to talk about retirement income during their working life, recognising that retirement isn’t a one-off event but about income for everyday living,” Sparrow said.
“This reform helps reframe super as an income system, not just a one-off lump sum.”
Sparrow said COTA Australia also recognised the need for older people to have a choice of lifetime income products to support their retirement plans, but warned that income security must go hand-in-hand with fair access to credit.
“Retirees should not have to hold back large lump sums just in case something goes wrong. Banks must better assess assets and non-PAYE income so older Australians can access appropriate credit when they need it,” she said.
“Superannuation is one part of Australia’s broader three-pillar retirement income system, operating alongside the Age Pension and private savings, including the family home, in supporting income and security in later life.”
Sparrow said Retirement Incomes can be complex to navigate, and any reforms must ensure that people are able to access independent, consistent information, guidance and advice.
“Government-backed services such as MoneySmart play a crucial role in building trust in what is a complex system,” she said.
“Implementation of these reforms must deliver greater security and confidence for older Australians.”
More news here.
