Australians entering retirement will most likely be stopped from taking their superannuation as a lump sum and will have to access it through a structured self-funded pension, a top Treasury official says.

Treasury executive director and chief operating officer John Lonsdale signalled that recommendations from the financial system inquiry put forward to overhaul superannuation are likely to be adopted.

Receiving a windfall can leave us confused about how to make best use of the money. Credit:Jim Rice

"Superannuation trustees should be cautiously optimistic that the framework will go towards something like what is outlined by the inquiry. That said there are still a lot of details that need to be understood," Mr Lonsdale said at the Australian Securities and Investments Commission annual conference in Sydney on Tuesday.

A key finding of the wide-ranging inquiry, which chairman David Murray handed to government for their consideration in December, was that people should no longer be given access to their superannuation savings as a lump sum at the end of their working life.