Key findings of retirement income review

Paul Osborne
·1-min read

MAIN FINDINGS OF RETIREMENT INCOME REVIEW

* The retirement income system is effective, sound and its costs are broadly sustainable, and no changes are needed

* Without government intervention, Australians would not save enough for their retirement

* 71 per cent of people aged 65 and over receive the age pension or other pension payments, with 60 per cent of these receiving the maximum rate

* The age pension has outstripped growth in wages and prices since 2009

* 16 million Australians own close to $3 trillion in superannuation assets

* The cost of the age pension is expected to fall from 2.5 per cent of GDP to 2.3 per cent by 2060, while superannuation tax breaks will rise from two per cent to 2.6 per cent of GDP

* Higher superannuation guarantee contributions mostly come at the cost of lower wage growth

* Working-life income for most Australians would be around two per cent higher in the long run if the super guarantee was kept at 9.5 per cent (rather than rise to 12 per cent, as already legislated)

* A 30-year-old who withdrew $20,000 under a government scheme to cover costs during the coronavirus pandemic will be short $69,300 on retirement, while the figure for a 55-year-old would be $42,200.