Retirement
Think about super, property to protect younger generations’ future: CEDA
Retirement
Think about super, property to protect younger generations’ future: CEDA
As Millennials grapple with the gig economy, older generations accrue sizeable wealth in superannuation and property, a new study calling for an assessment of the super system has found.
Think about super, property to protect younger generations’ future: CEDA
As Millennials grapple with the gig economy, older generations accrue sizeable wealth in superannuation and property, a new study calling for an assessment of the super system has found.
The Committee for Economic Development of Australia on Friday released its study into current and future inequality in Australia, finding that while younger workers’ incomes increased at a faster rate than older households over the 1985-2010 period, older generations’ levels of wealth increased more rapidly.
“This has been driven by increasing superannuation wealth as retirement approaches, and increasing property wealth,” explained CEDA chief executive Melinda Cilento, adding that younger households have simultaneously experienced declining rates of home ownership and higher indebtedness.
The report also noted that the 25 years of economic growth have not had a significant impact on general inequality, as the national percentage of people sitting below the population remains stuck at 13 per cent.
“At the same time we are not preparing fast enough to manage emerging risks around technology, which could compound these issues further.
“For example, gig economy workers do not have superannuation deducted by their employer, potentially exposing them to future retirement income gaps,” Ms Cilento said.
“The government should explore the adequacy of superannuation, pension and savings products for contingent workers to ensure this does not become an issue in the future.”
The report also called for the government at all levels to address housing affordability as it affects young Australians. This recommendation made an appearance on last year’s Housing Australia report, Ms Cilento noted.
In particular, the report said the government should consider relaxing and better aligning planning restrictions, while assessing the rules around the means testing of income received by downsizing.
CEDA also pushed for an annual land tax on housing in place of transaction taxes, and called for the government to “review the way in which pensions, superannuation and housing interact in providing support for Australians in the retirement phase”.
RELATED ARTICLES
Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more
Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more
Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
Superannuation
Rest welcomes progress on ‘Payday Super’ reform
Rest, one of Australia’s largest profit-to-member superannuation funds, has welcomed the Australian Government’s release of draft ‘Payday Super’ legislation, which aims to align Superannuation ...Read more
Superannuation
SuperAPI and Humanforce partner to improve superannuation compliance for one million Australians
Superannuation engagement platform SuperAPI has partnered with human capital management provider Humanforce to streamline payroll and superannuation contributions for more than one million Australian ...Read more
