In a promising development for older Australians, a series of new superannuation changes is poised to improve their financial prospects.
The Federal Government announced the upcoming changes to the superannuation industry after revealing that they will adopt the bulk of Quality of Advice review recommendations to ensure Australians have access to reliable and affordable financial advice.
These reforms aim to address the high cost of financial advice, better protect consumers, and introduce measures that ensure Australians are able to access helpful information that could make a positive difference to their quality of life in retirement.
The proposed reforms will introduce measures that will ensure:
The Government is expected to develop legislation over the coming year to deliver these reforms.
We want Aussies to have access to affordable financial advice.
But we want to get the balance right.
Today, I announced the Government will adopt the bulk of the recommendations of the Quality of Advice Review.
— Stephen Jones MP (@StephenJonesMP) June 13, 2023
Council on the Ageing (COTA) Australia Chief Executive Officer, Patricia Sparrow welcomed the proposed reforms, claiming they would help people approaching retirement with advice on how to maximise their retirement income.
“Anything that makes it easier for people approaching retirement with clear, transparent and high quality advice on how to maximise their retirement income is a good thing,” Sparrow said.
“The focus needs to be on providing customers with high quality advice that will help them ensure they are in the best possible position in retirement.
“Anyone who has attempted to navigate the superannuation system will tell you that it can be confusing, complex, and unclear.”
While Sparrow said COTA approved of the reforms, she called on more to be done to ensure people are provided with the advice and support they need when making financial decisions regarding their superannuation.
“What’s still missing is a way to better engage with people still working and accumulating superannuation,” Sparrow said.
“It’s critical that people are given clear and accurate advice before they hit retirement age too so that they can make decisions early that will put them in the best possible position.”
Reforms to the superannuation landscape aren’t the only changes seniors need to be aware of when it comes to their finances.
As July 1 approaches, significant changes are on the horizon for the age pension system that will impact individuals aged 60 and above.
Although the amount of money pensioners receive will remain the same, the thresholds for determining eligibility have undergone some adjustments.
The changes to the thresholds will mean more people will now be eligible to receive the age pension but it’s important to have a thorough understanding of the upcoming changes to avoid any nasty financial surprises.
As reported by Retirement Essentials, the changes coming to the income thresholds and asset thresholds include: