The Federal Government has been urged to ensure that its Review of the Retirement Income System does not needlessly impact the investment settings already put in place by Australian Retirees.
The Association of Independent Retirees (AIR) has welcomed the review announced by the Treasurer, Josh Frydenberg, but warned against causing uncertainty amongst those who had already retired.
“In conducting the review the association seeks certainty for those in retirement so they will not be adversely affected by any changes made to existing retirement income legislation,” AIR director, Terry O’Callaghan said.
He said that the association was particularly concerned that retirees who had set in place their retirement investments prior to their retirement, were not subjected to any changes to current legislation that would adversely impact on their retirement income.
“Changing the ‘goal posts’ on legislative arrangements for Australians who have already retired and are partly or fully self-funding their retirement, should not be an option for the Review,” O’Callaghan said.
He said the objective of the review needed to be to ensure that the Retirement Income System gave Australians, including self-funded retirees, adequate retirement incomes, and that the system was fiscally sustainable and provided appropriate incentives for self-provision in retirement – something which would be fully supported by the AIR.
“However retirees need certainty in planning for their retirement and AIR seeks an assurance from the Government that retirees will not be affected by any proposed changes that adversely impact on their retirement income,” O’Callaghan said.