Retirement jargon demystified: All the terms you NEED to know
The language around retirement finances and super can be overwhelming... and downright confusing. In this episode, I chat with David Bell, Executive Director at the Conexus Institute, to unpack.
Have you ever read something from your super fund… and thought, I have no idea what that means?
You’re not alone.
In this week’s episode of Prime Time, I’m joined by David Bell, Executive Director at The Conexus Institute and co-author of a recent paper that analysed retirement income forms from 20 of Australia’s biggest super funds. The results? Let’s just say… not exactly straightforward.
Together, we explore why there are so many confusing names for what’s essentially the same thing (flexi pension, choice income, pension account — take your pick), why the language doesn’t line up across tools and forms, and how it all impacts your ability to make good decisions about your retirement income.
Until the industry agrees on a clear dictionary, my advice is this: don’t be afraid to ask your fund to explain things in plain English. It’s your money, after all — and you deserve to understand how it works.
LISTEN TO THIS EPISODE OF THE PODCAST HERE:
Highlights of the conversation:
Why retirement jargon needs a rethink
From ‘retirement income stream’ to ‘flexi pension’ to ‘choice income’ — it’s confusing, inconsistent, and unhelpful for real people trying to access their money. David Bell unpacks what’s gone wrong — and why simplicity matters.What David found in his research
David and colleague Jeff Warren reviewed the retirement forms of 20 major super funds and found 11 different names for the same type of account — with limited consistency in product design or guidance.The ‘pension’ problem: two words, very different meanings
One of the most common sources of confusion? The word “pension” — which could mean the government Age Pension or your retirement income account. We talk through the implications and why clearer naming matters, especially when you’re trying to navigate both.The case for including ‘income’ and ‘flexibility’ in the name
David argues that good retirement products should encourage people to draw income confidently — but also support flexibility. Whether it’s a holiday, home reno, or new car, retirees need to know they can access lump sums. He shares the naming principles he believes would actually help.Why most super forms fall short
The current system often funnels people into just two options: minimum drawdown rates or a fixed dollar amount. Very few funds offer more personalised options — like inflation-linked income — and even fewer provide clarity around what the settings mean for your future lifestyle.The drawdown trap
Minimum drawdown rules are widely misunderstood and ticking the default box could lock you into a strategy that doesn’t support your lifestyle or spending needs. We unpack how the rules work and why they’re a hidden trap for many retirees.Set-and-forget drawdown strategies: helpful or risky?
Some super funds offer default “managed drawdown” approaches — but are they actually working for people? We explore the rise of these products and why education, transparency and proper integration with your other income sources are still missing from the equation.
From Bec’s Desk
Today’s a short one — it’s my last day in the UK, and what a buzz it’s been. The UK pension funds have been so welcoming of our Epic Retirement and Prime Time conversations and frameworks for retirement education. I’ve also been really impressed by the innovation and thoughtfulness in their own retirement solutions and conversations.
And… pinch me — I’ve just announced the launch of the UK edition of How to Have an Epic Retirement in front of hundreds of people from the UK pensions industry.
I’ll share more about it in this weekend’s Epic Retirement Newsletter, but until then, enjoy this podcast. David Bell is doing some really important research in the retirement space, and I loved this chat.
Tomorrow, I start the long journey home. See you down under soon. And in the meantime, make your Prime Time count.
And if you haven’t already got it, get your copy of Prime Time: 27 Lessons for the New Midlife here. It’s still disappearing quicker than the cheese platter when the kids come home.