The Australian Government's retirement income policy recognises that Australia has an ageing population. We need to reduce reliance on the government age pension.

The policy encourages individuals to have a higher standard of living than would be possible from the age pension alone. This is achieved by:

• encouraging people who are able to save for their retirement to do so, particularly through super
• providing an adequate public safety net, the age pension, for Australians who are unable to support themselves in their retirement years
• ensuring the system is predictable, facilitates choice and is equitable
• ensuring the system is sustainable and delivers an increase in national saving.

These objectives are met through the three-tiered retirement income system.