Andrea Slattery
Varying proposals for alternative uses for superannuation monies run the serious risk of destroying the primary objective of this compulsory scheme – providing people with income for a secure and dignified retirement.
The SMSF Association CEO/Managing Director Andrea Slattery says there is an “urgent need” for everyone involved in superannuation to reaffirm their commitment to this goal, and to stop looking for other ways to use the $1.93 trillion pool of savings.
“Superannuation was established to allow people to be self-sufficient in retirement, and not as a cure-all for every public policy issue that arises.
“The Financial System Inquiry was extremely cognisant of the need for re-affirm this primary objective for superannuation when it called for ‘broad political agreement for, and enshrine in legislation, the objectives of the superannuation system and report publicly on how policy proposals are consistent with achieving these objectives over the long term’.
“The Association’s Patron, Sir Anthony Mason, made a similar point at our National Conference when he said ‘confidence (in superannuation) rests on the stability of assumptions on which the present system is based. Confidence is at risk of being shaken when assumptions are disturbed by changes to the system’.
“Both the FSI and Sir Anthony make valid points. Continual speculation about how superannuation can be used can undermine the stability of the system and reduce people’s confidence in making long-term savings decisions.”
Slattery says that what these recent debates over the different uses for superannuation have highlighted is the importance for bipartisan support for our retirement income goal for superannuation.
“There have been announcements at our recent National Conference emanating from both major political parties suggesting such a bipartisan approach could become a reality, and the Association is dedicated to achieving this outcome.
“As illustrated in the recent Intergenerational Report, superannuation must play a large role in alleviating future government costs on age income support, health and aged care spending. This supports the need to maintain superannuation’s focus on providing retirement incomes,” she says.
