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Australia. Spend your money before you die, Treasury urges retirees
The Morrison government wants retirees to draw down their superannuation balances before they die, and has asked super funds to develop a strategy to make it easier for members to take money out of their super in retirement.
The Commonwealth Treasury released a position paper on Monday canvassing the need for superannuation trustees to develop strategies that would encourage people to draw down their full super balances in retirement.
The strategy, which would be in place from July 1, 2022, comes in response to a growing body of evidence showing retirees are dying with most of their wealth intact.
By 2060, one in every three dollars paid out of the superannuation system will be an inheritance rather than retirement income, according to the government’s retirement income review.
“Partly because they have only ever been primed to save as large a lump sum as possible, retirees struggle with the concept that superannuation is to be consumed to fund their retirement,” wrote Treasury.
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