A renewed focus on the retirement phase of superannuation is one of the federal government’s priorities in the immediate term, as well as streamlining regulatory red tape in an effort to improve the efficacy of the financial service sector.
“I think our retirement income system is one of the best in the world. Nonetheless, I think there is a sense also that the system is more mature and stronger in accumulation phase than in retirement phase,” Minister for Financial Services Daniel Mulino told delegates at The Tax Institute National Superannuation Conference in Sydney last Friday.
“[In accumulation phase] there are a broader range of products that [are enabling people to achieve] good outcomes, but in retirement phase, as more and more people are approaching that and switching over, there is a sense we need to think about the range of product offerings [and ensuring they] are as high quality and varied as possible.”
While Mulino recognised products manufactured for individuals who no longer work need development, he indicated financial advice would play an important role in finding better solutions for Australians in this stage of their lives.
“It’s not just what happens in retirement, but also the advice people get in transitioning from accumulation [phase] to retirement,” he explained.
He noted the government has released two discussion papers to assist it to achieve this outcome.
“One is on ways in which government can better collect data about what happens in [people’s] retirement phase and one is about working with the sector and other stakeholders on best practice principles.
“So I think they’re both sensible steps forward.”
On a macro level, he confirmed Canberra is looking to improve regulatory processes to enhance the operation of the financial services industry as a whole.
“I’m really keen to work right across financial services on how we can reduce admin costs across all of the regulators,” he said.
“There are many regulators in financial services, as I think there should be because they each have core public policy goals, but I think, for example on the data collection side, there are ways in which I think we can better align their engagement with organisations to achieve the same goals and sometimes to possibly improve the goals.”
