IGR 2015 shows need for income in retirement: SMSF Association

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Intergenerational Report 2015, SMSF AssociationThe SMSF Association (formerly SPAA) has said the Intergenerational Report 2015 highlights the need for the superannuation system to provide income streams in retirement.

“This report has a very positive message; Australians are living longer, with increased life expectancy accompanied by better quality health,” said SMSF Association CEO Andrea Slattery.

“In this environment it is imperative that all governments adopt a bipartisan approach to superannuation that will allow the system to achieve its primary goal – to provide dignity and security for Australians who will be living longer, healthier lives.”

Slattery says now is the right time for an informed debate to create superannuation policies so people “forego income today to have financial security in retirement.”

Also, more must be done to reduce dependence on the Age Pension, with only a small reduction forecast in the Intergenerational report.

“In light of this projection, surely it underlines the Association’s argument that superannuation has to encourage and allow people to build adequate superannuation balances and this requires the right incentives for long-term savings.”

As the Intergenerational Report calls for increased workforce participation by older Australians, Slattery says the superannuation system needs to allow workers to save while not working and give them incentives to keep working and saving via superannuation..

“It is an issue that the Association has been addressing with our recent Budget submission detailing ideas on voluntary contributions for those working past age 75 and greater flexibility for post-tax contributions after age 65.”

An increasingly older population will also place pressure on the health care, aged care and the age pension, so “the importance of getting the right policy settings for superannuation is paramount,” Slattery said.

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