New retirement reforms aim to secure Australians' financial future

The federal government has announced a series of initiatives designed to help Australians navigate the financial and lifestyle challenges of retirement.

Australians’ perceptions of retirement are shifting as life expectancy increases. A global survey conducted by MetLife revealed that more than half of Australians now anticipate living beyond 100 years, reflecting broader societal changes in how people view aging and financial planning.

The recent government reforms aim to improve access to information, encourage the creation of innovative retirement products, and enhance transparency across the superannuation system.

Life insurers support government’s retirement initiatives

The Council of Australian Life Insurers (CALI) has expressed its support for the changes, describing them as timely and essential for addressing the needs of the country’s growing retiree population.

CALI chief executive Christine Cupitt said that the measures would benefit approximately 5 million Australians currently in or approaching retirement.

“We welcome the federal government’s announcement, which will help Australians better navigate what can be a complex life stage,” she said.

Details of the reform package

The government’s new retirement measures include:

• expanding consumer access to retirement planning tools via the Moneysmart website and a national education campaign
• amending income stream regulations to promote new retirement products, including options with money-back guarantees and instalment-based payments
• introducing voluntary best practice principles to guide the development of modern, high-quality income solutions
• establishing a reporting framework to provide clearer insights into retirement outcomes 

These changes build on CALI’s earlier recommendations, including its March submission calling for greater investment in resources to help Australians make informed financial decisions for retirement.

Retirement preparedness remains a concern

Research commissioned by CALI highlights significant uncertainty among Australians about how they will fund their retirement.

The study found that half of respondents expect to rely on the age pension at some point, while a third remain unsure of their plans. Only 15% said they did not anticipate claiming the pension.

CALI emphasised that improving access to affordable advice is critical. It also pointed to the government’s “Delivering Better Financial Outcomes” package, which includes provisions for better access to financial guidance.

“People should be able to contact their life insurer directly and get simple advice at no extra cost to them,” CALI said, reiterating that Australia’s life insurers are committed to empowering people to make sound choices for their retirement.