Government tipped to delay response to retirement income review
It’s likely the government will delay its response to the Retirement Income Review until the federal budget given the economic impact of COVID-19, says BT Technical Services.
The government first released the terms of reference for its review of the retirement income system in September last year.
The government commissioned the review to establish a “fact base” for the current retirement system and allow better understanding of how the three main retirement pillars — super, the aged pension and private savings — interacted with each other to deliver outcomes for retirees.
This review was originally recommended by the Productivity Commission in its report, Superannuation: Assessing Efficiency and Competitiveness.
BT head of financial literacy and advocacy Bryan Ashenden said with 30 June 2020 having now passed, the panel tasked with undertaking the income review should have passed their report to the government.
However, it may still be some time before the outcomes of the review are made public and the government provides its response, said Mr Ashenden in a BT Technical Services podcast.
Mr Ashenden said the government may wait until the federal budget on 6 October this year to release its response to the review.
“As we enter the second half of 2020, with the government considering its economic response to the debt created by the COVID-19 measures, while still looking to stimulate economic activity, the outcomes and from this review, and the government’s response have perhaps never been more important,” he said.
“The review covers the current state of the system and how it will perform in the future as Australians live longer and the population ages. It will consider the incentives for people to self-fund their retirement, the fiscal sustainability of the system, the role of the three pillars of the retirement income system, and the level of support provided to different cohorts across time.”
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.