The Association of Superannuation Funds of Australia says the Government should set a minimum retirement income of $25,000 a year.

In a submission to the Senate Select Committee on Superannuation’s inquiry into the adequacy of the retirement income system, ASFA said the present compulsory system is not sufficient in meeting the needs of people on average incomes.

The inquiry is considering the adequacy of current tax arrangements for superannuation and determining an appropriate level for the retirement and income needs of Australians. It will also investigate the taxation treatment applying to transfers from overseas superannuation funds to Australian funds. 

ASFA’s submission says the $25,000 target needs to be increased to $30,000 by the end of 2030. Its strategies for increasing retirement income include broadening coverage of contributions (to include casual and self-employed workers) and expanding government contributions for low-income earners. 

ASFA also suggested a thorough review of the means test. It’s forming a working group to consider options to simplify taxation.