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Government urged to provide lifetime annuities to retirees
A new report from the Grattan Institute recommends the federal government encourage retirees to use as much as 80% of their superannuation balance over $250,000 to purchase an annuity.
“Retirees should be guided into a simple lifetime annuity, which would provide a guaranteed level of income for the rest of their lives, and which should be offered by the federal government. The government should also offer a range of annuities, including an investment-linked annuity,” the Simpler super: Taking the stress out of retirement report said.
The report highlighted how many retirees, despite sizeable super balances in some instances, find retirement stressful. A recent survey by CHOICE, for example, found that four-in-five pre-retirees find retirement planning complicated, and 40% find it “very” or “extremely” complicated.
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