Survey reveals seniors want super to stay the same

cent/government/FSC/government-and-regulation/research-and-ratings/retirement-savings/age-pension/financial-services-council/chief-executive/

8 March 2013
| By Staff |
image
image
expand image

The majority of older Australians (59-plus) object to the Government exerting any more influence on changes to super — not just tax tinkering but restrictions on lump sum withdrawals and increasing the preservation age — a National Seniors survey has found.

It said 86 per cent of respondents objected to the Government making any more changes to super, although 70 per cent were not confident the rules would stay stagnant until they retired.

National Seniors chief executive Michael O'Neill said the survey rebutted the idea that people planned to blow their retirement savings, as over 85 per cent said they had no plans to rely on the age pension in retirement by taking super as a lump sum. Over half objected to restricted access.

Just under 40 per cent intended to or did take a combined lump sum and income stream, while 26 per cent planned or did rely purely on an income stream.

Of the 14.3 per cent that intended to take super as a lump sum, 29.3 per cent said it was for re-investment and 26.3 per cent planned to pay off the mortgage, National Seniors found.

O'Neill said changing the rules was not fair on the people who made voluntary contributions by foregoing other things, such as paying off the mortgage or going on holidays. He said changes were not happening within a wider retirement income strategy.

Despite actuarial reports that show that people now live longer, 64 per cent were opposed to raising the preservation age.

Although the Financial Services Council's Bond reports show discretionary contributions were in decline for a year until the last December quarter, 90 per cent of respondents said they made voluntary contributions. The majority that did not said they had no money to spare or made alternative investments.

The Actuarial Institute released a white paper last November that advocated increasing the preservation age and restricting access to taking super as a lump sum.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 2 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks 1 day ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 2 days ago

TOP PERFORMING FUNDS