‘Give Retirees Peace of Mind’: Reforms Unveiled Aimed at Improving Super Performance

Older Australians will soon have more flexibility and transparency in managing their retirement savings, as the federal government introduces a series of reforms aimed at enhancing the superannuation system.
“I am announcing a new package of reforms that will help give retirees peace of mind, help them make their super go further and provide more support to navigate retirement,” Treasurer Jim Chalmers said in his address at ASFA National Conference held in Sydney on Nov. 20.
The government will invest in expanding the resources available on Moneysmart, ensuring retirees have easy access to reliable, independent information on retirement options.
The second focus is on improving retirement products. The government aims to tighten regulations on innovative income streams, encouraging super funds to offer features like money-back guarantees and instalment payments, providing members with greater flexibility and choice.
The third reform establishes voluntary best practice principles for the superannuation industry, specifically regarding retirement products.
These principles will guide the industry in developing modern, high-quality retirement products that ensure financial security for Australians as they enter retirement.
The fourth component of the reform package is a new reporting framework for retirement outcomes.
Starting in 2027, this framework will offer retirees greater transparency, providing clear insights into how their super products are performing.
To ensure these reforms are effectively implemented, the government has tasked the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) with conducting a Pulse Check report by the end of 2025.
Within 20 years, most retirees will have accumulated superannuation at a rate of 9 percent or more annually throughout their working lives.
“Improving consumer education is key to helping Australians make informed decisions about their retirement,” said ASFA CEO Mary Delahunty.
The strategy would define the primary purpose of the retirement income system and set a long-term vision for life after work.
The proposal allows homebuyers to withdraw up to 40 percent of their super to buy their first home.
ASFA’s research suggests it would only benefit higher-income earners and potentially drive up house prices.
“The evidence is overwhelming that this will not help with building houses,” said Delahunty.
However, Coalition leader Peter Dutton argues that if people had been allowed to access their superannuation 10 years ago, young Australians today would better positioned financially, helping them into housing, boosting their retirement, and growing their super.