The findings of the Retirement Income Review have been welcomed as a sound basis for the formulation of government policy that may have a direct impact on self-funded retirees, the Association of Independent Retirees (AIR) has stated.
AIR president Wayne Strandquist said the review’s final report, released late last week, “provides a much-needed fact-based assessment of the three pillars of the age pension, compulsory superannuation and private savings that are the foundation of Australia’s retirement income system”.
Strandquist noted self-funded retirees typically rely on these pillars for their retirement income and so had a direct interest in any changes enacted by government as a result of the review and final report.
He said he was pleased the report identified the Australian retirement income system was effective and sound and that its costs were sustainable.
“This observation provides a sound basis for consideration of any changes that may arise from the report to address issues of inequity and ensuring the system delivers a retirement income that achieves a reasonable balance in relation to working life earnings and retirement income,” he said.
“Self-funded retirees need to be sure that they have adequate savings to fund their retirement for a multitude of reasons apart from funding a reasonable standard of living.
“These reasons being having sufficient funds invested to ride out economic instability in instances such as the GFC (global financial crisis) and COVID-19, cover inflation affecting the cost of living, providing for higher healthcare costs in old age, providing for residential aged care if required and providing for times of low-interest rates.
He said AIR would work with the government to draft legislation that addressed issues raised in the report.
