Key points include:
– We need to create an enduring framework that is inherently flexible and not dependant on the government of the day to make changes.
– This framework should enshrine two things; a target for retirement savings to reach a replacement rate of 65 per cent of pre-retirement income, to a maximum of 2x average earnings; and a superannuation access age that is calibrated to changes in life expectancies.
– With this framework in place, the system will have inbuilt flexibility to adjust as our population changes.
– In addition, any review of this framework be considered within the Intergenerational Report, which is published every 5 years with a 40-year time horizon. It also contains the important demographic, actuarial and economics information that will allow policy makers to make evidence based recommendations for our super system.
– We also need to think of ways to improve retirement outcomes for certain groups in our society who have different characteristics or needs, including Indigenous Australians, women and people with broken working patterns.
Source: BT
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