Fix the system urges ASFA
The Association of Superannuation Funds of Australia (ASFA) has urged the Federal Government to focus more on fixing the gaps in the system to ensure its ability to deliver adequate retirement income.
In a recently released report, ASFA has identified what it calls several flaws in the current debate on superannuation in the country, including:
- Superannuation policy should be focused on how to improve retirement incomes for the majority of the population.
- A high income does not always equate with a high superannuation balance (especially the case with women).
- High-income earners are not necessarily high-income earners all their life.
- Who should be 'in the system', who currently is not?
"A successful retirement system has broad coverage: This means public policy must be focused on achieving better retirement savings for the bulk of the Australian population," said ASFA chief executive Pauline Vamos.
"This does not mean that the superannuation system should never change but any reforms should be considered against whether they assist in meeting the objective of ensuring that all Australians achieve an adequate retirement income, not on the short-term Budget bottom line.
"The paper identifies five main categories of Australians who tend to be over-represented in the lower income deciles and identifies where the current tax concessions and compulsory super arrangements are working well and where there is room for improvement."
The full report can be found here