Age Pension and rent assistance beats super
The Age Pension and rent assistance represent better tools than superannuation to provide an adequate retirement for those on low incomes, according to the Grattan Institute.
In a submission to the Senate Standing Committee on Economics review of the objective of superannuation, the Grattan Institute has strongly disagreed with the views of the superannuation industry that the Government needs to lift the bar on the objective of superannuation.
It said the Committee should "reject the view that superannuation's objective is to provide an adequate, or ‘comfortable' retirement income for all Australians".
The Grattan Institute said this view could lead policymakers to force people to save under the Super Guarantee so that their incomes while working were less than their incomes in retirement.
"This view misleads, because the Age Pension and Rent Assistance are better tools than super to provide an adequate retirement for those on low incomes," the submission said. "And this view would support maintaining generous tax breaks, at substantial budgetary cost, for those whose retirement will be comfortable without them."
The submission said the Committee should also reject suggestions to use the ASFA ‘comfortable' retirement standard as a benchmark for the system.
"This standard supports an affluent lifestyle more luxurious than most households experience during their working lives. The average household can only reach the ‘comfortable' benchmark in retirement by being less than ‘comfortable' beforehand," the Grattan Institute said.
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
