THE Retirement Income Review (RIR) must be used to strengthen and not undermine the policy foundations of Australia’s successful super system, which has given workers a chance at a dignified retirement and eased the tax burden of the aged pension.
The government is expected to receive the RIR report today, the first such review of the system in almost 30 years.
But unusually for a review of this nature a draft was not circulated for stakeholder comment and it has relied on modelling using data not available to the public or external experts.
In the interests of transparency, it is critical this report is immediately released to the public so its findings can be tested and verified.
The report has an opportunity to build on the successful super system with sensible evidence-based reform that helps provide members with a dignified retirement, addresses entrenched inequalities and tackles underperformance while strengthening the default system.
If used as a stalking horse to erode the policies that underpin the system - compulsion, preservation, universality and a strong default system – workers’ retirement savings and the economy will suffer.
The only way to deliver a dignified retirement is to stick to the legislated increase to the super rate to 12 per cent. The increases are more important than ever after balances were hit through the government’s early release of super scheme and the Coronavirus downturn.