Sensible taxation and policy reform is needed to safeguard retirees' living standards and to reduce future budget pressure, actuaries believe.
In response to the tax discussion paper, the Actuaries Institute has recommended more clarity and certainty around superannuation taxation arrangements and retirement incomes policy.
Actuaries Institute president, Estelle Pearson, said, "Superannuation should not be out of bounds for revision and review".
"Via a summit or an independent panel of experts, the Government should be taking advice that will halt the obvious and perplexing discrepancies that are emerging in current policy and which are confusing many workers and retirees," she said.
The Actuaries Institute has recommended the Government consider introducing a lifetime cap of around $2.5 million on superannuation savings that can be transitioned into a super income stream that pays no tax on investment earnings.
This will lower the high-earner 30 per cent concessional tax rate to incomes above $180,000 from the current $300,000, and easing pension eligibility restrictions linked to the sale of the family home.
"There is little to be gained by favouring piecemeal changes which frustrate and confuse Australians who are saving for their retirement or trying to enjoy their retirement years without being too much of a burden on the community," Pearson said.