Retirement
Calls to scrap super guarantee increases a ‘contrived assault’
The Grattan Institute’s argument to avoid increasing the amount of superannuation guarantee has been described as a “contrived assault” that will condemn retirees to poverty.
Calls to scrap super guarantee increases a ‘contrived assault’
The Grattan Institute’s argument to avoid increasing the amount of superannuation guarantee has been described as a “contrived assault” that will condemn retirees to poverty.
Responding to the Institute’s claims that increasing the superannuation guarantee from 9.5 per cent to 12 per cent will only benefit the wealthy, the Association of Superannuation Funds Australia (ASFA) defended the superannuation system and plans to increase the guarantee.
CEO Dr Martin Fahy said on Monday: “This is just another contrived assault by Grattan on our world leading superannuation system.
“The fact is that the system is delivering significant increases in retirement living standards for all Australians, including low income earners.”
He argued that even an extra few thousand dollars could allow retirees to make home repairs, visit the dentist and pay for the heating and cooling of their homes.
Continuing, he pointed to ASFA modelling which predicts that increasing the super guarantee to 12 per cent will mean the proportion of Australians enjoying a comfortable retirement will double to 50 per cent.
ASFA was the subject of scrutiny over the definition of “comfortable” used in its retirement savings benchmark.
Nevertheless, Mr Fahy stood by the broader super system, arguing it is a “unique social policy achievement”.
“Grattan clearly doesn’t care about the adequacy of people’s retirement incomes or their quality of life in retirement — they are condemning retirees to be sicker, poorer and older for longer.
“Impoverishing retirees is no way to deal with the challenges they face, such as funding rising health and aged care costs. Ignoring these problems won’t make them go away.”
He said the researchers’ claims amounted to “stoking intergenerational tensions” while ignoring the challenges posed by an ageing population.
ASFA, which is the voice of the $2.6 trillion superannuation industry, argued that Grattan’s findings were “self-serving”.
“They do not not take into account the additional capital available to retirees in the form of superannuation savings, which increase income levels and generate higher living standards,” the group contended.
Mr Fahy continued: “Grattan selectively considers the interaction of superannuation and the age pension for a very narrow cohort to covertly justify the diminishment of superannuation.
“The reality is that having more private savings, for all cohorts, results in better retirement outcomes.”
RELATED ARTICLES
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
