AIR welcomes RIR findings
The Retirement Income Review (RIR) has provided self-funded retirees a “much needed, fact based” assessment of the three pillars of Age Pension, compulsory superannuation and private savings, according to the Association of Independent Retirees.
Wayne Strandquist, AIR president, said self-funded retirees could draw income from any one of those pillars so they had a direct interest in any proposed changes.
“[AIR] is pleased to note that the key observation of the Review Panel was that ‘the Australian retirement income is effective, sound and its costs are sustainable’,” Strandquist said.
“This observation provides a sound basis for consideration of any changes that may arise from the report to address issues of inequity and ensuring the system delivers a retirement income that achieves a reasonable balance in relation to working life earnings and retirement income.
“When compulsory superannuation was introduced in 1992, the government of the day and subsequent governments have supported tax concessions to encourage greater independence of the working population in funding their retirement.”
Strandquist said the superannuation guarantee had not yet reached full maturity and there was still a requirement to encourage more Australians to be less dependent on the Age Pension.
“Self-funded retirees need to be sure that they have adequate savings to fund their retirement for a multitude of reasons apart from funding a reasonable standard of living,” Strandquist said.
“These reasons being having sufficient funds invested to ride out economic instability in instances such as the Global Financial Crisis (GFC) and COVID-19, cover inflation affecting the cost of living, providing for higher health care costs in old age, providing for residential aged care if required, and providing for times of low-interest rates.
“AIR is looking forward to working with the Government to draft legislation that will address issues raised in the fact-based report on retirement income.”
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