At the heart of our response is our belief that everyone’s needs are different, and members should have the flexibility to choose the income products that best suit their circumstances. Here’s a rundown of our key recommendations:

Make it easier for members to apply for the Government age pension

We recognise that a large cohort of our members will draw an income in their retirement from a range of sources, including the age pension.

TelstraSuper has recommended that the law be broadened to allow super funds to have a greater role in reducing some of the current complexities around retirement planning  – such as undertaking a bridging role in helping members apply for the Government age pension to make it easier

Encourage more people to access financial advice

The benefits of financial advice are well known, and TelstraSuper already provides a range of phone and digital advice services at no additional cost.

Recognising the value of financial advice, especially to those approaching retirement, we’ve suggested the Government consider the introduction of a one off “Advice bonus” – an advice payment or subsidy available to taxpayers at or after the age of 55 to enable all members to receive advice about retirement planning. This will enable more people to get more detailed, personal advice that is tailored to their personal needs.

We also called on the government to make the law clearer for super funds, so they can provide more tailored advice “nudges” to members when they need it most.

Support data sharing for a better member experience

Understanding what Australians expect from retirement helps the super industry develop better products and ultimately deliver better retirement outcomes.

Greater access to government data – such as that held by Services Australia or the Australian Tax Office –could enable super funds to gain a more holistic understanding of their members and their circumstances. For example, it could be used to understand age pension eligibility, home ownership, and assets outside of super. This is key information that could assist funds to tailor the types of products and services offered to members, as well as education and support.

Greater focus on financial literacy

Many Australians have a limited understanding about what retirement income products are available and how to get the most of their super and the age pension. We've recommended that the Government provide additional educational support for Australians about the concepts of retirement, budgeting and taxation relating to super.

Provide more income certainty in retirement

The Government’s paper highlights that a key concern of many members is running out of money in retirement. TelstraSuper supports the continued availability of the Government aged pension at adequate levels as the longevity solution for those people who are not fortunate enough to be able to build up private superannuation savings. We also support the development of annuity style products within the superannuation system to offer choice to members.  

For example, in November 2023, TelstraSuper launched a new product – known as TelstraSuper’s RetireAccess Lifetime Pension – to provide members with a guaranteed^ income for life, with the option of being indexed for inflation or market-linked. This option is designed to work alongside other income sources, including allocated pensions and the Government age pension.

 

FIND OUT MORE ABOUT LIFETIME PENSION

 

As a profit-to-member fund, the actions we undertake are with our  members’ best interests’ in mind. This includes contributing to public policy discussion to ensure that our superannuation system remains fit-for-purpose but, importantly, ensures our members have the flexibility and freedom to choose the retirement products and services that work best for them.

^ The benefits provided by RetireAccess Lifetime Pension are supported by a life insurance policy issued to Telstra Super Pty Ltd, the trustee of TelstraSuper (“Trustee”) by Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670) (“Challenger”). The Trustee, as issuer of the RetireAccess Lifetime Pension product, does not provide any guarantee in respect of the product. The guarantee is provided by Challenger Life under the life policy issued to the Trustee. The Trustee relies wholly on Challenger Life to pay your pension and will not pay your pension under a RetireAccess Lifetime Pension if Challenger Life is unable to.