Moves to ensure that older Australians can get better advice to support them to manage their superannuation are very welcomed, COTA Australia says.
The Federal Government has announced changes to the financial advice laws which will, among other things, allow super funds to provide information to members at key life stages through communication 'nudges' and allow older Australians to access more affordable financial advice.
COTA Australia Acting Chief Executive Officer, Corey Irlam, said ensuring people can get trusted, quality, affordable advice on how to manage their superannuation in a way that delivers the best outcomes for them is crucial.
"There's no question that making it easier to get good quality, affordable and transparent advice on how best to manage our superannuation is a good idea," Mr Irlam.
"People's lives are busy and often the last thing they want to do is think about their superannuation. But we're hopeful this announcement will begin to see super funds provide timely information in bitesize chunks to encourage members to take steps that will improve their finances in retirement.
"This isn't just about telling them they've reached eligibility for a certain stage, it also needs to be about developing more sophisticated messages to people earlier in their working lives to consider steps that may open the door to better fiscal options for them. This is something COTA has long advocated for.
"As our population ages, we need to be looking at measures to ensure that people can live the dignified life in retirement that they deserve to. Key to that is making sure people can access good quality, accessible and affordable financial advice. This week's announcements that will hopefully reduce the cost of advice in time are very welcome.
"Our superannuation scheme was designed to sit alongside government supports such as the age pension and rent assistance and ensure that Australians could enjoy the dignified retirement they deserve. We need to be doing everything possible to ensure people can make the most of their super."
