CPA Australia and CA ANZ provide this submission in response to this inquiry to consider ways of improving consumer experiences, choice, and outcomes in Australia’s retirement system. We have chosen to respond to two areas considered as part of the Terms of Reference of this review.

Additionally, we are responding through the lens of the retirement income system, and only comment incidentally on matters which are not traditionally considered as part of this system.

The retirement income system is incredibly complicated, primarily because of government policy settings and the lack of interaction between various policies. An added problem is constant changes to those policy settings. Wholesale reform and simplification is essential if Australia is to successfully navigate the challenges of population ageing.

Retirement benefit provision is best handled by APRA-regulated funds, and there is little need to subject Self Managed Superannuation Funds to the retirement income covenant. While we support lifetime annuities and pensions, their uptake may require increased government financial assistance and consideration of lump sum withdrawals for expenses like aged care.

We oppose limiting lump sum withdrawals, considering that unexpected expenses are normal in retirement.