The proposal means all superannuation funds (excluding SMSFs) will have to develop and publish a retirement income strategy for members by 1 July 2022, subject to the passage of legislation. 

The move has been welcomed as a significant step toward improving the lives of older Australians in retirement, by older persons peak body Council on the Ageing (COTA) Australia.

Currently retirees can access their superannuation after turning 60 with little or no guidance from their fund.

The COTA said this leads to many retirees not having the confidence to utilise their funds as they age, compromising their quality of life.

COTA Chief Executive Ian Yates said superannuation funds have a responsibility to their members. 

“While superannuation funds have a responsibility to optimise the “nest egg”, they have an equal responsibility to ensure that when the egg is hatched the funds have products and services that support the optimum quality of life and dignity of their members in their retirement," he said. 

“The Retirement Income Covenant focuses on getting funds to rebalance their planning and advice equally on the accumulation and retirement phases, ensuring the system works as it was intended.

“While welcoming the Covenant, we note this legislation as presented is a missed opportunity for Government to legislate the purpose of the Superannuation Guarantee as recommended by its recent Retirement Income Review.

“This legislation builds on the Morrison Government’s recent and welcome introduction of other legislation that will see all workers who earn less than $450 a month from their employer for the first time receive superannuation for every dollar they earn.”


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