Support for the proposed wording of the objective of superannuation strongly outweighs opposition to it, according to a Financial Services Council (FSC) poll that also found people were reluctant to allow the government to choose the best retirement product for them.
The FSC stated polling conducted by CT Group on its behalf found 53 per cent of respondents agreed with the proposed wording contained in legislation currently before parliament, but only 10 per cent disagreed.
The online survey of 2531 people, conducted by CT Group between 22 January and 1 February, also found 37 per cent neither agreed nor disagreed with the wording, which states the objective of superannuation is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.
FSC chief executive Blake Briggs said the government’s plan to move ahead with a simple definition commonly understood by all Australians and agreed upon by the superannuation industry was a positive move that would create better outcomes for fund members.
“Clearly defining the purpose of superannuation will help provide certainty for the 16 million Australians who are doing the right thing by saving for their own retirement,” Briggs said.
“An enshrined objective for superannuation would lead to more stability in policy settings and end the cycle of constant tinkering, which undermines confidence in the system.
“Once legislated, the objective will help drive the focus of policy reform to address systemic issues, such as including superannuation contributions on government paid parental leave to help close the gender gap where women retire with 18 per cent less superannuation than men.”
Despite the support for the objective, other polling conducted at the same time found low levels of trust in the government’s ability to decide what the best retirement product is for superannuation fund members, with 87 per cent of people wanting to make that choice for themselves.
The Superannuation (Objective) Bill 2023 is currently before the House of Representatives, having been introduced and read for the first time on 16 November 2023 and read a second time on 29 February, opening the way for its progress to the Senate.
