Appendix One Recommendation 37 is to have superannuation funds provide retirement income projections for their members with their annual statements.
It is felt that this level of information will give more tangible interest to the member and they will have more “Buy in” to their own superannuation benefits and what it will mean to them in retirement.
This is a laudable goal from the Financial System Inquiry and will provide more and better information for consumers about their superannuation and retirement incomes however the inquiry acknowledges that it is an issue where people have more than one fund and it also highlights that calculators are required so that people can build on this information which would include useful information such as Centrelink age pension and other things.
It suggests that the ATO could be a place for these calculators to reside and it will be interesting to see if the ATO is prepared to divert some of its budget to these objectives.
This increase in information will be helpful to consumers however it still cannot touch the basic information that the average person needs to know which is how much will “My Retirement cost ”
Everybody is different in what their retirement will cost and true comfort and security in retirement will not be achieved until you know what your retirement lifestyle will cost you and how much income or cashflow you will get from your assets and any Centrelink age pension benefits.
These initiatives if activated will provoke more interest amongst members about what the ultimate objective of superannuation is and that should be applauded however more research will be required by consumers to ensure they achieve the lifestyle that they desire in retirement