Real Estate Institute of Australia (REIA)’s ‘Submission: Legislating the Objective of Superannuation’ has encouraged the Treasury to take a bigger picture approach to defining what a successful retirement means. 

REIA President, Hayden Groves said REIA supports the need to enshrine the objective of superannuation, but the draft definition does not respond to the mounting challenges our retirement support systems will face as our population ages and home ownership rates decline. 

“REIA agrees Australians would benefit from legal framework to safeguard their mandatory superannuation savings.

“The 2021 Retirement Income Review identified that home ownership is a fundamental pillar of successful retirement supplemented by superannuation and other income.

“This will become more important our nation deals with the economic, social and ethical implications of an increasing ‘greying population’ that will be seeking access to their superannuation.

“It will also affect those younger and lower-to-middle income Australians whom over the past 40 years have suffered from declining home ownership rates.

“Increases in residential property prices, later workforce entry, delay of household formation and declining housing affordability have all been key factors in this trend,” he said.

“Unless trends to declining home ownership are addressed, superannuation and additional government support will have to step up to support an increasing cohort of ‘retiree renters.”

Mr Groves said that the solution was to take a bigger picture approach to ensuring a successful retirement. 

“We strongly urge the Australian Government to not simply legislate an objective of superannuation but to carefully consider all factors of a successful retirement, not simply compulsory superannuation, including access to superannuant funds for housing acquisition.

“Our recommendations include continued support for first home buyers and to examine successful schemes for young homebuyers in Canada, New Zealand and Singapore where home ownership is a well understood role in a successful retirement.

“Providing flexibility and a holistic view of retirement income, savings and accommodation is needed that responds to rising challenges Australia as a nation is experiencing.

“The role of superannuation funds could be expanded so they are not simply the guardians and gatekeepers of compulsory retirement wealth,” Mr Groves said.