‘Lump sum use is not uniform, and is most prevalent among those with low superannuation balances (less than $10 000). These households tend to take between half and all of their superannuation assets as a lump sum. The evidence suggests that this behaviour has little impact on Age Pension reliance.
‘In undertaking its analysis, the Commission has identified a range of policy areas that warrant further and collective attention. These include:
- how involuntary retirement impacts policy outcomes;
- the way in which incentives inherent in the retirement income system affect individuals’ savings and retirement decisions;
- how the retirement income system can better cater for the diverse circumstances and needs of retirees, particularly in the drawdown stage where ‘one size’ never fits all;
- how to best manage longevity risk given the demographic transition underway.
(Introduction, Productivity Commission Report, 7.7.15)