Australian Super is urging policymakers to focus on how super fund members could earn more as they retire.
👉Background: Australian Super is the country’s biggest super fund. Get this: approximately one in every ten Australian workers are members. The challenge is that once many of their members retire, and stop earning an income, they are drawing down on their superannuation year on year.
👉 What happened: Last week, Australian Super’s CEO said policymakers should turn their attention to something new - like how super fund members could potentially earn more once they retire.
👉 What else: The idea would be to automatically move retirees into products that pay an income without the need to pay for financial advice. And this would be a very different model for retiree income.
💡The role of the superfund may be required to evolve from having one big job, to two big jobs. Right now, super funds are responsible for helping members accumulate and grow their super balances during their working lives.
💡But in the future, super funds may also be responsible for providing retirement incomes to their members.
💡According to Australian Super, 3.5 million Australians are expected to retire in the next ten to fifteen years and not all of them can afford financial advice - so something has gotta give.
Sign up for Flux and join 100,000 members of the Flux family
