Is the government going to raise the age when Australians can access super?
The federal government could boost their budget by $7 billion a year by 2055 if they raise the age for when Australians can access their superannuation to 65.
The Productivity Commission released a model that suggests households are likely to delay their retirement by two years in the future, and reap a super savings rise by 10 per cent.
Most retirees were found to be farsighted in the ways that they spend their super. Less than 30 per cent of super benefits are taken as lump sums – when they are, they’re used to reduce debt, invest or purchase “durable goods” to use through retirement, according to the report.
Liberal backbencher Andrew Laming says the federal government is certainly looking for Australians to work for longer and delay their retirement. “In a wealthy economy, where we’re all living longer, we do have to think about collecting superannuation later for the simple reason that it needs to last for our expected longevity,” he told ABC radio.
However, he warned that arrangements needed to be made for those who are forced to leave the workforce because of illness or redundancies and believes any rule changes should happen gradually.
Changes to the current system should be made with the diverse needs and circumstances of retiring Australians in mind, as one size doesn’t fit all.
Source: Productivity Commission.
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