20 November 2020
SMSF Association Media Release
The SMSF Association welcomes the Retirement Income Review – a significant report that will provide policy evidence for the superannuation industry for many years to come.
Association CEO John Maroney says it’s reassuring to the industry, and self-managed super funds in particular, that the Review has found the retirement income system is effective, sound and its costs broadly sustainable.
“It has also identified areas for improvement, some of which concur with what the Association said in its submission to the Review.
“The retirement income system is complex, and there is a pressing need to improve public understanding of it – a focus of our submission. It’s to be hoped this report will provide the necessary evidence to ensure that many of the suggestions relating to making the SMSF sector less complex can be implemented.
“The Review also issued a fresh call for superannuation to have a clear Objective to guide policy, improve understanding and provide a framework for assessing its performance. Our submission also made having an Objective a priority, so it is pleasing the Review has endorsed this position.
“The report also questions how older Australians draw down on their retirement savings and how there is a bias towards the preservation of capital. By raising this issue, the Review is providing evidence by which policy settings can be put in place to help people to smooth out consumption over their lives in an optimal way.”
Maroney thanked the three-member Panel for its diligent work in providing the industry with a roadmap for future policy debates. “The value of this report will be seen for years to come.”