Report – Retirement revolution: Simpler smarter retirement

Retirement revolution: Simpler smarter retirement is the second in a series of three groundbreaking reports by SMC on retirement. This report collates new data and analysis on how Australians are managing their incomes in retirement, using fund-level data, behavioural insights, and modelling.

It comprehensively updates Australia’s evidence base on retiree incomes and provides a roadmap to a better retirement income system.

The report’s central thesis is that 2.8 million more Australians will retire in the next decade—twice the current annual figure. These retirees will have higher super balances and rely more on a combination of super and the Age Pension. This increased complexity will be compounded by already convoluted super laws, numerous product options, Age Pension means-testing, and uncertainties around life expectancy and aged care costs.

It’s in this context that SMC outlines a roadmap for reform, to address these challenges and simplify the retirement experience of retirees. The report sets out several actionable steps to make Australia’s retirement income system simpler and smarter, which can help governments make good policy decisions and prioritise changes. This roadmap can also help super funds as they continue to refine their retirement income strategies and develop the mix of information, guidance, advice and products best suited to their members.