Treasury has confirmed that the proposed increase to the cut-off age from 67 to 75 for the bring forward rule for non-concession contributions will allow individuals approaching 75 years of age to bring forward non-concessional contributions from future years (i.e. during which they will be aged 75 years or over). This is contrary to the initial intent of the proposed change and provides an opportunity for those approaching 75 to boost their retirement savings.

In July, the Government released a consultation paper on the long-awaited retirement income covenant. The aim of the new measure is to improve the retirement outcomes of Australian retirees by requiring the custodians of their savings, superannuation funds, to develop coherent retirement income strategies for their members. See our earlier blog for more details.

The Government committed in the 2018-19 Budget to introducing a retirement income covenant for superannuation trustees and consulted on the covenant in June 2018. Treasury released a position paper on 19 July 2021 that reflects the feedback from that consultation process and presents the Government’s refined policy, with the aim of guiding trustees ahead of the covenant being legislated and taking effect from 1 July 2022.

The Actuaries Institute Retirement Incomes Working Group has published a research note which looks at the importance of accurate calculations of life expectancies in retirement planning. Our very own Technical Services Manager, Melanie Dunn, assisted with this research and is passionate about helping retirees and advisers understand their longevity risk.

SMSF couples need $2 million in savings at retirement to be confident of affording a $100,000 p.a. lifestyle in retirement. The good news is that 40% of 65-year-old SMSF couples have saved enough in their funds to meet this aspirational lifestyle.