Retirement must remain purpose of superannuation: SMSF Association

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purpose of superannuation, smsf associationThe SMSF Association says the purpose of superannuation must remain providing self-sufficiency in retirement. Using superannuation for other purposes risks preventing the system from “providing people with income for a secure and dignified retirement.”

Recent ‘though bubbles’ have included using superannuation for deposits for first home buyers and to pay for job training.

SMSF Association CEO Andrea Slattery says there is an “urgent need” for everyone involved in superannuation to reaffirm a commitment to the goal of superannuation.

“Superannuation was established to allow people to be self-sufficient in retirement, and not as a cure-all for every public policy issue that arises” she said.

The Financial System Inquiry final report recommended a legislated purpose for superannuation, with some indications this proposal may receive bipartisan support. Slattery said the SMSF Association “is dedicated to achieving this outcome.”

“The Financial System Inquiry was extremely cognisant of the need for re-affirm this primary objective for superannuation when it called for ‘broad political agreement for, and enshrine in legislation, the objectives of the superannuation system and report publicly on how policy proposals are consistent with achieving these objectives over the long term.”

“Continual speculation about how superannuation can be used can undermine the stability of the system and reduce people’s confidence in making long-term savings decisions.”

“As illustrated in the recent Intergenerational Report, superannuation must play a large role in alleviating future government costs on age income support, health and aged care spending. This supports the need to maintain superannuation’s focus on providing retirement incomes.”

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