The newly elected federal government should implement an education program to improve the level of knowledge around the operation of the superannuation and retirement income system, according to the Association of Independent Retirees (AIR).
AIR president Wayne Strandquist said the association welcomed the improvements to the retirement savings and income system, but those changes required more understanding given the 2020 Retirement Income Review showed a lack of comprehension.
“We are calling on the incoming government to implement a national program to improve the understanding of superannuation and other aspects of the retirement savings and income system,” Strandquist said.
“This would enable people to better plan for their retirement and, with enhanced financial literacy, make the most of their retirement savings and income.
“The Retirement Income Review report included many observations about the need to improve their understanding of the retirement income system.
“It also reported that there was significant evidence of low financial literacy, particularly about the key issues in the retirement phase.”
He added the review concluded there should be a better understanding of the interaction between the tax, superannuation, social security and aged-care systems in retirement, and called for more direction to reliable sources of information.
“People need to know where to get reliable independent information so they can make knowledgeable decisions when planning for and during retirement,” he said.
This could include the extension of information available from moneysmart.gov.au and Services Australia, with a personalisation option through my.gov.au.
“However, good information can’t help people unless they know about it, so these information sources need to be promoted via a national awareness campaign,” Strandquist said.
