Oct 20, 2015
The federal government’s decision to back the Murray recommendation to enshrine an objective for superannuation has been welcomed by an independent committee of experts set up to push for a holistic package of retirement incomes reform. But it says much more work will be needed.
The Committee for Sustainable Retirement Incomes (CSRI), a non-partisan body of senior academics and policy experts, also described as a significant step in the right direction the decision to require trustees to offer their members a comprehensive income product in retirement.
“Today’s announcement addresses perhaps the greatest weakness in our retirement income system – the failure to turn accumulated savings into secure and adequate lifetime incomes,” CSRI executive director Patricia Pascuzzo said. “The benefits stage of the superannuation system is not well developed, with few options available to help people manage the risks of outliving their savings.”
However, Ms Pascuzzo said the announcement is only a starting point and further work will be needed to develop the measures before they are implementable.
“The aim should be an holistic approach and a package of measures that ensures all elements of the retirement system are working together in an integrated way towards the achievement of adequate retirement and sustainable retirement incomes for all,” she said.
Comprising such senior figures as former head of the Department of Prime Minister and Cabinet Dr Michael Keating, the CSRI was formed this year to push for substantial policy measures to improve the sustainability, equity and effectiveness of the retirement income system in Australia.
It was at the committee’s inaugural meeting in Canberra in June that FSI head David Murray said inaction on reforming retirement incomes would only make the system more vulnerable.
The CSRI continues to act as a forum for ideas on improving the system and hosts a website here.
FOR FURTHER INFORMATION, CALL PATRICIA PASCUZZO (0426 838 988)