In a joint statement, Treasurer Jim Chalmers and Deputy Treasurer Stephen Jones announced that the Albanian government is ready to take steps to reform the retirement phase of the pension system.

The government said the reforms would give retirees greater peace of mind, help them advance their work and provide them with more support to get through retirement.

The objective of the reforms was set to ensure that policy and products were as much focused on the retirement phase as the accumulation phase.

“As our economy changes, the population ages and the super system evolves, more Australians will tap into larger savings reserves that they can rely on for longer,” Chalmers said.

“Over the next decade, more than 2.5 million Australians are expected to retire. Within two decades, most people who retire will have accumulated a pension of 9 percent or more per year for their entire working life.

Reforms would focus on critical areas with the aim of strengthening pension outcomes and include improved independent advice, better pension products, best practice principles and increased transparency.

The Government said it would expand and update resources on the Moneysmart website, ensuring retirees have easy access to independent and reliable information on super and pension options.

“ASIC will run a consumer education campaign to raise awareness among those nearing retirement and those who are retired. New resources will begin to be deployed in the first half of 2025,” the government said.

The reforms would also attempt to drive innovation in quality superannuation products, which would give members more options to meet their needs and maximize their super, by improving the regulation of income flows.

The updated regulations would come into force on July 1, 2026, with prior consultation on the draft regulations.

Proposed changes to revenue stream regulations included money back guarantees and installment payments instead of an initial lump sum.

The reforms would include the introduction of a new set of voluntary principles of good practice which would also be open for consultation in 2025.

In addition, a new reporting framework on pension outcomes would provide members with greater transparency and create common understanding and would come into force from 2027.

“APRA will collect and publish data on an annual basis, so that progress can be measured over time. The design of the measures and process will be informed by a consultation led by the Treasury from next year,” the government said.

Chalmers said these changes would build on the obligations introduced by the Retirement Income Agreement and work in tandem with the Government’s agenda to deliver better financial outcomes.

“These changes will enable more Australians to get the most out of their retirement through more reliable information, better products and greater transparency,” Chalmers said.

“They will help ensure Super delivers on its fundamental promise of providing a dignified retirement for more Australians.”