We can divide a retirement income system into two phases: saving money for retirement and using those savings to fund our retirement. In Australia, we do the first reasonably well. However, we have work to do on the second.
The Government acknowledged this when it introduced the Retirement Income Covenant in 2022. Superannuation funds are also realising that they have not done enough for retirees. For example, AMP CEO Alexis George told the AFR in September, “We’ve arguably been guilty of cutting them adrift as they transition into retirement.”
The latest Australian Bureau of Statistics data tells us that 670,000 Australians intend to retire in the next five years. These Australians want to know more about retirement—according to Google Trends, searches for the term ‘retirement’ have increased by over 80 per cent in the last decade.
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