The way members choose (or need) to spend their money in retirement is important.
Some members will invest all of their superannuation into an income stream to draw a regular income as soon as they retire, some will invest part of their super in an income stream while also drawing out lump sums from their super for larger expenses either at retirement or throughout retirement, and others have alternative income and won’t need to access their superannuation as a regular income at retirement (though they may choose to access it later in life).
Our membership includes members in an accumulation scheme, in defined benefit “lump sum” schemes and in a defined benefit lifetime pension. These members all have different rules around when and how they access their superannuation benefit at, after or even before retirement.
Additionally, the way members spend money in retirement changes over time. Our own research of members aged 55+ tallies with other research which says that planning for aged care is not an area that Australians think about when retirement planning (or when in early retirement). This is despite it potentially being a large outlay when the time comes. Therefore, this objective of “flexible access to capital” also needs to take into consideration those costs that many people will incur later in life but are not considering at the point they retire.
Educational materials around aged care have been prepared to help members self-educate and will continue to be reviewed and developed as appropriate.