Super news for August 2024

Super organisations demand reform to stop domestic abusers accessing their victim’s super

The Super Members Council, the Association of Superannuation Funds of Australia and Women in Super are calling on the Australian Government to reform super death benefit laws to stop perpetrators of family violence being able to claim their victim’s super.

Under existing laws, an abuser can receive a victim’s super death benefit unless they are the direct cause of that person’s death. Even if the perpetrator has been convicted of family violence offences, or if systemic abuse indirectly contributed to the cause of the victim’s death, they are still able to receive the benefits.

The three associations wrote to key federal ministers asking to expand the Forfeiture Rule to family violence-related crimes and investigate legislative reforms that would allow super funds to withhold death benefits in substantiated cases of family violence.

“Perpetrators should not profit from their crimes. It’s time to close this legal loophole to protect victims of family violence and financial abuse,” Super Members Council CEO Misha Schubert said.

“The proposed reforms are not just about preventing financial gain for perpetrators; they are about sending a clear message that Australia will not tolerate abuse in any form,” Women in Super CEO Jo Kowalczyk said.

Choosing how and when to retire aids wellbeing

People who chose to retire, rather than being forced to retire out of necessity, have significantly fewer worries (51%) and adjust better to being retired (44%), according to a study by the Macquarie University’s School of Psychological Sciences of 1000 Challenger customers aged over 60.

Only 32% of those who were forced to retire said they had significantly fewer worries and just 28% said they adjusted well to being retired.

“Proactively choosing how and when to retire may be the secret ingredient to wellbeing in our golden years,” lead researcher Professor Joanne Earl said.

“The findings demonstrate that feeling empowered to choose when and how you step into this next phase of life results in a healthier transition and greater retirement happiness, retirement adjustment and satisfaction.”

When compared to Challenger’s Retirement Happiness Index Research, retirees with a guaranteed income stream were found to be happier and more positive, with higher levels of financial security (72% v 56%), mental health (85% v 78%) and enjoying good social connections (79% v 70%).

“For the first time, we are hearing from real customers about the power of guaranteed regular income. The data clearly indicates that annuities, or some element of guaranteed regular income in retirement, can be a gamechanger, and we are seeing this in our broader customer base and increase in annuity take-up,” Challenger chief executive, customer, Mandy Mannix, said.

Time to rethink the role of the family home in retirement planning

Enabling more Australians to access the equity in their homes may enable them to enjoy a better retirement income, according to a Dialogue Paper from the Actuaries Institute called, More Than Just a Roof: Changing the Narrative on the Role of the Home.