The amount retirees draw down their super is rational and does not point to unnecessary frugality, according to Rice Warner.
In an analysis, the research house said the Retirement Income Review’s suggestion that retirees did not draw down enough of their super was only based on small studies which coincided with high investment returns.
Pointing to data of those who were aged 65 to 70 in 2000, Rice Warner said there was a trend in Age Pension dependency of the surviving pensioners.
“The trend shows that people do spend quite a bit of their accumulated superannuation early in retirement – more self-funded retirees shift to part pensions over time, and more part pensioners shift to become full pensioners,” it said.
“Overall, the behaviour appears rational and does not point to unnecessary frugality.”
People aged 65 to 70 in 2000
Source: Rice Warner
Rice Warner said while the overall dependency on the Age Pension increased with age, there were steps that could be taken to improve expenditure patterns in retirement.
It said some steps included:
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
Add new comment