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REST enhances retirement calculator
The enhanced REST retirement calculator will help members decide whether they need to extend their career or make extra contributions, according to REST chief executive Damian Hill.
The 'Lifetime Supermodeller' retirement calculator, which takes into account members' changing lifestyle patterns and social security benefits, breaks retirement income up into what superannuation will provide (along with other assets) and what the age pension will provide.
"The vast majority of our members are going to go onto the age pension fairly soon after they retire - they haven't accumulated sufficient superannuation," Hill said.
Hill hoped that members would be spurred into action after the Lifetime Supermodeller alerted them about the inadequacy of their retirement savings.
Members can use the calculator to see the effect of part-time work and additional contributions on their post-retirement income, Hill said. The transition-to-retirement (TTR) calculator can help members decide the best time to start and end a TTR strategy, he added.
Research conducted with members who have been advised to take a pension shows that people often have assets outside superannuation - something that the calculator accounts for, Hill said.
"Even though [members] may only have a small benefit with REST, they are usually in some other savings program - often in super but sometimes outside super like a rental property - so they do have other assets that can produce income. So they want a holistic view of their assets," Hill said.
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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