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Our super funds won't help us with retirement, so it's time to take control
Unfortunately, many people are unaware that superannuation funds are mandated to help their members achieve good retirement outcomes, which means they might not even realise they are missing out.
This article appeared in the Sydney Morning Herald and The Age in print and digital on Sunday 23rd July 2023. You can read the full article here.
Planning for your golden years can be thrilling, but the retirement landscape is changing quickly, and not everyone is keeping up. As more Baby Boomers approach retirement, there is a growing concern that super funds aren’t doing enough to guide Australia’s retiring generation through this exciting but overwhelming phase of life.
Regulators have this week called for urgent action after a scathing review by the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority, which assessed how super funds are implementing the retirement income covenant. This covenant, set up in 2022, requires superannuation funds to assist members who are close to retiring or have already stopped working to improve their retirements.
The report highlights that many Australians are unnecessarily holding back spending on their retirements, potentially leading to a lower living standard than what could be achieved with proper financial planning. It says the Australian community needs better assistance in using their superannuation savings effectively to create a good life in retirement.
APRA deputy chair Margaret Cole emphasises the importance of super funds providing assistance to their members as they plan for a sound financial future. If you’re approaching retirement yourself, you understand how challenging it can be to navigate the complex financial information in both pre- and post-retirement phases.
Unfortunately, many people at this stage of life are unaware that superannuation funds are mandated to help their members achieve good retirement outcomes, which means they might not even realise they are missing out.
So, where does that leave you? If you’re feeling overwhelmed and unsure of where to start, fear not! Let’s tackle this together and kickstart your retirement planning process while also demanding more support from the super fund sector. Here are seven steps to get you started: (Read them in The Age here).
This article offers readers access to our Epic Retirement budgeting template, which we explain in detail in the book, How to Have an Epic Retirement. You can download the budgeting template free, here.