A high proportion of Australians over 50 regard superannuation as a key element of their retirement plans and want changes to contribution rules, but are concerned early access will increase age pension funding costs.
A joint survey, carried out by the Super Members Council (SMC) and National Seniors Australia (NSA), of more than 3000 respondents aged 50 and older found 79 per cent regarded superannuation as ‘very important’ for their post-work years, while 78 per cent wanted the ability to make direct contributions into a retirement account.
Currently, retirees contributing to super are still required to maintain an accumulation account alongside their pension account and pay fees for the operation of both.
NSA chief executive Chris Grice said: “Older people value superannuation and strongly support its underlying principles of universality, compulsion, preservation and concessional taxation.
“While the fundamentals are strong and should be maintained, there is support for sensible changes to make super even better among retirees and those preparing for retirement.”
The survey found a larger number of respondents, at 88 per cent, were concerned about the financial well-being of people who access their super early, noting the potential impact on their financial security in retirement and the increased burden it would place on taxpayers due to a greater reliance on the age pension.
The two groups found the concerns about early access also translated into strong positions about preserving superannuation, with 89.5 per cent of respondents stating it must be saved for retirement and 70 per cent adding they would not have saved enough without super savings being compulsory.
SMC chief executive Misha Schubert said the results highlighted the value of superannuation and maintaining its role as a retirement savings vehicle.
“Super is Australians’ precious income to live on in retirement, not a band-aid for cost-of-living pressures or enabling early withdrawals that would just whack up house prices. We urge policymakers to listen to older Australians and keep super safe for future generations,” Schubert said.
