“Policy settings need to change to encourage the development of products for the retirement phase, such as deferred lifetime annuities and reforming the drawdown rules for people trying to access their super,” Mr Greco said.

More broadly, IPA chief executive officer Andrew Conway said many retirees do not have adequate knowledge or the guidance to appropriately decide when and how to draw down their retirement savings “to cater for the remaining years of their lives”.

“We agree with the FSI report that many retirees do not know how to manage investments, inflation and longevity risks involved with retirement,” he said.

“People need to treat superannuation upon retirement as a long-term financial stream, not a sudden windfall gain.”