Superannuation rise would give retirees confidence to spend later

Academics and industry insiders have again urged the federal government to go ahead with the legislated increases in the superannuation guarantee (SG), arguing that most balances are inadequate to fund a decent retirement.

In a recent opinion piece for The Australian Financial Review, the minister responsible for superannuation, Senator Jane Hume, reignited the debate by arguing that many retirees were living too frugally and should increase their superannuation drawdowns to improve their retirement.

She cited findings from Treasury’s Retirement Income Review that noted if the “rate of employer contributions to super remained at 9.5 per cent and people made more efficient use of their retirement savings, many would have higher replacement rates than they would have with the SG at 12 per cent and drawing down their balances at the legislated minimum rate”.

But Treasury’s review also found that 60 per cent of Australians aged 60 to 64 have no more than $200,000 in their superannuation accounts.

Continue reading about how a super rise would give retirees confidence to spend later.

First published on www.thenewdaily.com.au and republished with permission from The New Daily. For the full article visit The New Daily website.