A spotlight on the retirement phase of super

In relation to our article At last: A serious attempt to fix retirement phase of super By Andrew Podger

Andrea Coney, Port Fairy, Feb 24, 2025

I applaud Andrew Podger for highlighting the need for an overhaul of the retirement phase of super in his article. The spotlight on this is overdue and should commence with an understanding of “what is” at present. From personal experience with Australian Super, communications are related to superannuation funds. Once these funds are rolled into a pension fund communications from Australian Super, related to pension funds, are non existent or not relevant to retirement phases. There is no guidance for retirees on managing the risks or free independent expert advice.

A further concern is, with the rollover of monies into a super pension, the Australian Government has mandated withdrawal amounts. Retirees with a super pension are required to withdraw minimum amounts each year. If one aims to draw down on interest earned only, not capital, a concern would be that this minimum withdrawal will result in decreasing the capital resulting in reliance on government pensions.

Many retirees would like to remain financially independent, plan for old age, be confident of a comfortable future and, as Podger describes, be part of a system, “delivering income for a dignified retirement”.