Thursday, 10 February 2022
The retirement phase will no longer be the poor cousin to the accumulation phase in Australia’s superannuation system after Parliament approved new laws to protect the interests of retirees.
Aware Super, the fund with the greatest proportion of members in the retirement phase, has welcomed Parliament’s move today to pass the Retirement Income Covenant into law.
Chief Executive Deanne Stewart said the reforms would help ensure super funds prioritised the needs of all their members – not only those saving and preparing for retirement, but also those already in retirement.
“This law makes it explicit that funds need to give the same attention to the retirement phase as they do to the accumulation phase, and ensure members get the best possible outcomes right throughout their lives,” Ms Stewart said.
“The whole point of the superannuation system is to help Australians retire with dignity – to help them have their best possible retirement. The retirement phase is fundamental to the system, yet for a long time, in parts of the sector, it has been something of an afterthought.
“It’s incumbent on every super fund to give the retirement phase the attention it deserves, and to prioritise retirement income strategies. We’re pleased to see this imperative enshrined in law.”
Aware Super has $155 billion in funds under management, including more than $30 billion in retirement phase.
Ms Stewart said that just as retirement income strategies were pivotal to helping people retire with dignity, it was also vital retirees and those planning for retirement had access to personalised help, guidance and advice.
“It’s important Treasury’s Quality of Advice Review, which is soon to commence, considers how best to ensure all Australians receive the support they need as they plan for and enjoy their retirement,” she said.