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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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Rates
Features
Fees
Other
Lender
VariableN/AMore details
  • Available for Purchase and Refinance. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
Disclosure

loans.com.au – SMSF 70

  • Available for Purchase and Refinance. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
More details
Disclosure
VariableN/AMore details
  • Offset facility
  • EASY Refinance with minimal documentation
  • Residential & Commercial
  • Australia’s first certified Impact Lender

WLTH – Ocean SMSF 60 P&I ($50k - $2m)

  • Offset facility
  • EASY Refinance with minimal documentation
  • Residential & Commercial
  • Australia’s first certified Impact Lender
More details
VariableMore details
Disclosure

Firstmac – SMSF 70

    More details
    Disclosure
    VariableMore details

    Liberty Financial – Residential SMSF (LVR <80%)

      More details
      VariableMore details
      Disclosure

      Firstmac – SMSF 80

        More details
        Disclosure
        VariableMore details

        La Trobe Financial – SMSF Residential

          More details
          VariableMore details
          • Available for Purchase and Refinance. No application fee and no settlement fee
          • No monthly, annual or ongoing fees
          • Access your SMSF loan via our easy-to-use online app Smart Money
          Disclosure

          loans.com.au – SMSF 80

          • Available for Purchase and Refinance. No application fee and no settlement fee
          • No monthly, annual or ongoing fees
          • Access your SMSF loan via our easy-to-use online app Smart Money
          More details
          Disclosure
          • Available for Purchase and Refinance. No application fee and no settlement fee
          • No monthly, annual or ongoing fees
          • Access your SMSF loan via our easy-to-use online app Smart Money

          More details
          Important Information and Comparison Rate Warning

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of October 24, 2024. View disclaimer.

          Important Information and Comparison Rate Warning

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