A sweeping review of the nation’s retirement income system will canvass the age pension, superannuation and voluntary savings including the family home, and how they affect the budget and deliver financial support to older Australians, the Sydney Morning Herald reports.
Treasurer Josh Frydenberg has released the terms of reference for the review, which was recommended in January by the Productivity Commission.
Former senior Treasury official Michael Callaghan will head the government’s review of the retirement income system.
Noting that retirement incomes were based on three pillars – a means-tested aged pension, compulsory super and voluntary savings – the terms of reference require the review to establish a “fact base” of the current system.
It will then identify how the retirement system helps supports people in retirement, the role each pillar plays in that support, distributional impacts across the population and over time as well as the impact of current policy settings on public finances.
Mr Frydenberg on Friday acknowledged the review would be wide-ranging.
“The review will cover the current state of the system and how it will perform in the future as Australians live longer and the population ages,” he said.
A three-person panel headed by former senior Treasury official Michael Callaghan will run the review. He will be joined by Carolyn Kay, a member of the Future Fund’s board of guardians, and Deborah Ralston, who is a member of the Reserve Bank’s payments system board.
A consultation paper will be released in November, with the final report due by June.
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Retirement income review to range over pensions, super and housing (Sydney Morning Herald)
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