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Author: Michelle Grattan, Professorial Fellow, University of Canberra
Original article: https://theconversation.com/chalmers-targets-reforms-to-superannuation-products-and-transparency-in-the-retirement-phase-244047
Treasurer Jim Chalmers will announce on Wednesday a package of reforms to the retirement phase of the superannuation system, to make it easier to navigate and consumer friendly.
In a speech to the industry, Chalmers will point out the superannuation system is reaching “a pivotal moment”, with more than 2.5 million people expected to retire in the next decade.
Over the next four decades, superannuation drawdowns are estimated to increase from 2.4% of GDP to 5.6%.
The changes are aimed at helping people make their superannuation go further, as well as providing “peace of mind” for retirees.
The reforms fall into four areas.
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The government will expand resources on the Moneysmart website, so retirees have easy access to independent and reliable information on their options. The Australian Securities and Investments Commission (ASIC) will lead a consumer education campaign for those approaching or in retirement.
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Support for innovation in “quality retirement products” will provide more options to meet people’s needs. Updated regulations will begin from mid-2026. The changes will include allowing the funds to offer features such as money-back guarantees, and instalment payments instead of an upfront lump sum.
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A new set of “best practice principles” will be introduced, with consultation on draft principles starting next year. These will guide the industry in designing modern, high quality products for retirement.
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A new reporting framework will bring greater transparency and understanding of the system. A “retirement reporting framework” will begin from 2027, with data to be collected and published annually.
In his speech, released ahead of delivery, Chalmers says the superannuation system is a “great strength of the Australian economy and a great source of security for Australians, building wealth and wellbeing in retirement”. But it still needs more work, he says.