Retirees' call to clear AIR on confusing system

Association of Independent Retirees wants clarification of retirement savings and income system

Latest in Finance
CALL FOR CLARITY: The Association of Independent Retirees has welcomed changes to the retirement savings and income system, but wants a national campaign to spread the word.

CALL FOR CLARITY: The Association of Independent Retirees has welcomed changes to the retirement savings and income system, but wants a national campaign to spread the word.

Aa

Retirees are calling for clarity over retirement savings and income changes.

Aa

The Association of Independent Retirees (AIR) is calling on the newly elected federal government to ease confusion over recent changes to the retirement savings and income system.

President Wayne Strandquist said AIR was calling for the implementation of a national program to improve understanding of superannuation and other aspects of the system.

"This would enable people to better plan for their retirement and with enhanced financial literacy, make the most of their retirement savings and income," he said.

"The Association of Independent Retirees welcomes the many recent improvements to the retirement savings and income system, but increased flexibility often requires more understanding."

Mr Strandquist said the Retirement Income Review report highlighted evidence of low financial literacy, particularly when it came to "key issues in the retirement phase".

"The... review concluded there needs to be a better understanding of the interaction between the tax, superannuation, social security and aged care systems in retirement.

"People need to know where to get reliable independent information so they can make knowledgeable decisions when planning for and during retirement."

He suggested a national awareness campaign, provision of more information through moneysmart.gov.au and Services Australia, and a personalisation option through my.gov.au as steps which could improve understanding of the system.

Aa