AustralianSuper wants to get rid of separate accumulation and retirement accounts. Instead it argues for creating an ‘account for life’
Australia’s largest superannuation fund AustralianSuper wants to get rid of separate accumulation and retirement accounts, in favour of an ‘account for life’ that would enable members to seamlessly between work and retirement and integrates the Age Pension.
The fund also wants to see changes to the tax structure to allow people to draw an income over the preservation age and recommence contributions to their superannuation savings if they choose to work again.
“As the relationship between work and retirement evolves, many members are telling us they are struggling to navigate the complexities of a fragmented system, where the interplay of income from multiple income sources, be it from work, government benefits or private savings, is challenging to manage,’ Shawn Blackmore, Chief Officer Retirement at AustralianSuper, said.
“Many AustralianSuper members are telling us that they want flexibility and simplicity in the retirement income system as they define what retirement looks like for them and have confidence as they enjoy this next stage of their lives,” he said.
Blackmore made the comments in response to the government’s call for consultation on how to improve the retirement system in Australia.
Research suggests less than half of people apply for the Age Pension immediately when eligible, with many members missing out on their full Age Pension entitlement by delaying their application
“This is our opportunity to take bold and decisive action to deliver a retirement system that is as visionary as the introduction of compulsory superannuation more than 30 years ago and is the envy of the world,” Blackmore said.
AustralianSuper also called for a number of changes to the legislation around the provision of advice to members, including the request to make advice laws technology neutral in order to make better use of artificial intelligence.
Mass customisation has been a key challenge for funds in the provision of advice to their members, but AI and in particular chat bots could form part of the solution.
“Research suggests less than half of people apply for the Age Pension immediately when eligible, with many members missing out on their full Age Pension entitlement by delaying their application,” Blackmore said.
“Having a simple, seamless and most importantly, integrated, system in retirement, as they do in accumulation, will help retirees to navigate these changes with confidence,” he said.
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