“Superannuation is integral to the financial and broader wellbeing outcomes of 16 million Australians, who face complex challenges on their journey to retirement. We need to make navigating these important life decisions as easy as possible, for as many people as possible,” said institute CEO, Elayne Grace.

Ms Grace said the most fundamental barrier to overcome is shifting the national mindset around super from being a “nest egg” to one of generating income and one that can support the varied needs of Australians in their retirement years.

“Beyond the welcome fixes to financial advice for those Australians, we should be thinking about a holistic help, guidance and advice framework to remove the caution that many people feel when drawing down on their superannuation,” said Tim Jenkins, Chair of the institute’s superannuation and investments practice committee.

He added that a critical part of the solution, which is in line with top-ranking pension systems globally, is making sure super has pathways that help nudge people towards well-rounded default solutions for funding retirement.

However, he said notions of “a standardised product” need to be approached with care.

“A broad frame is required to consider super alongside any sources of government support, income from part-time work and home equity to fund a dignified retirement,” he said.

The institute stated it also supports the government taking steps on population-wide financial literacy and retirement phase guidance and education including recommitting to the National Financial Capability Strategy and introducing standard definitions for the key features of retirement income products.