Actuaries Institute urges overhauling Australia's retirement system

The white paper calls for a regulatory framework for superannuation trustees.

The Actuaries Institute advocates for a reimagining of Australia's retirement ecosystem to better support individuals in planning their futures and funding their lifestyles. Key recommendations include expanding the three pillars of retirement funding (age pension, compulsory superannuation, and voluntary savings) to promote additional income sources such as part-time work and accessing income from home equity.

“The retirement income system—including its interaction with other systems, such as tax and aged care—is complex and challenging to navigate. This challenge is compounded by low levels of financial literacy. People need Help, Guidance and Advice (HGA) for both the transition to retirement and in life after full-time work. However, it’s hard to get, and it’s challenging to access at an affordable price,” – Actuaries Andrew Gale and Stephen Huppert, said in the paper.

ALSO READ: National Disability Insurance Scheme needs to improve – Actuaries Institute

The paper suggests providing greater work flexibility and access to equity in homes, emphasising a shift from viewing retirement as a brief period before death to a more extended stage of renewal lasting up to three decades. 

The authors also propose establishing a regulatory framework for superannuation trustees to offer targeted help, guidance, and advice on retirement-related issues. 

The paper aims to address challenges posed by longevity, providing individuals with more options to secure income in retirement and emphasising non-financial considerations for a holistic retirement planning approach. 

Additionally, the authors call for a national longevity strategy to celebrate older Australians and their contributions while challenging societal attitudes towards ageism.