Aussies want to be in the loop on super changes
Australians want to be kept in the loop and given plenty of time when the Government makes any changes to the superannuation system, according to a white paper consultation.
Released by the Association of Superannuation Funds of Australia (ASFA), the consultation also found Australians do not really have an appetite for major changes.
Instead they suggested minor improvements, including keeping the system sustainable into the future, and accommodating the demands of an ageing population.
The results from the 'Vision for Sustainable Super’ were collected from submissions from the general public, surveys and research conducted by ASFA.
ASFA CEO Pauline Vamos said policy makers should know the Australian community is more engaged with their superannuation than ever before.
“The Australian community appears to have grown tired of the constant speculation regarding proposed changes to the system and they want stability and certainty when it comes to planning for their retirement,” Vamos said.
“It has truly become the community’s system, which means it is increasingly important to make sure the community is on board when it comes to making major changes to the superannuation system.”
A hot topic was imposing a tax on lump sums, with 56 per cent of the online submissions to ASFA showing they favoured tax-free lump sums at retirement.
On the introduction of a lifetime caps on contributions, industry participants suggested a rolling annual cap be implemented over a three- to five-year period.
But they remain divided on the issue of defaulting members into an income stream upon retirement. Some firmly oppose it due to concerns about consumer sovereignty and practicality of administration.
Suggestions received from the general public included making it compulsory to include member projections of likely income-stream outcomes in retirement on superannuation statements.
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