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The Association of Superannuation Funds of Australia has criticised the objective for superannuation proposed by the government, labeling it as inadequate.
ASFA interim chief executive Jim Minto said Australians need to take a strong interest in what the government has proposed as the objective of super, as the legislated objective will define how future governments treat super.
The objective shapes how much future governments will provide in the form of the age pension together with incentives for people to save for their retirement,” he said
The proposed objective is simply that superannuation should provide income in retirement to substitute or supplement the age pension.
“We know that with tight budget positions in the future, the government won’t be able to afford to provide a basic pension to ensure a comfortable and dignified retirement for Australians. It isn’t enough now for most people and will likely be even less so in the years ahead, but Australians should aspire to more,” said Mr Minto.
“ASFA wants the legislated objective of superannuation to enable as many people as possible to enjoy a comfortable standard of living in retirement.”
By setting a comfortable standard of living as the goal, future governments will look to encourage all Australians, not just the wealthy, to save more for their post-work years, said Mr Minto.
“This is an issue for people to get involved in. It is far too important to be left purely for politicians to decide, with limited public involvement,” he said.
“It is un-Australian for today’s politicians to settle on an inadequate objective for super that restricts its purpose to merely substituting or supplementing the age pension.”