Retirees forced into a superannuation system with no support; time for a change, says report

A new report by the Grattan Institute has proposed significant changes to Australia's superannuation system.

Retirees get little help with how best to use their superannuation. Credit: Getty Images

Key Points

• Research by the Grattan Institute finds 80 per cent of Australians say the superannuation system is too complex, and 60 per cent expect retirement to be financially stressful.
• The system steers more than four in five retirees into account-based pensions - which require retirees to manage their spending so they can avoid the risk of outliving their savings.
• The Grattan Institute report suggests an independent government agency should be established to operate an annuity scheme, rather than the private market.
• Retirees would be encouraged to allocate 80 per cent of their super balance above $250,000 towards this annuity - which could boost retiree's incomes by up to 25 per cent.