Super objective — reduce pension reliance
The key underlying objective of superannuation should be to reduce reliance on the age pension.
That is a key finding of a survey of superannuation fund executives conducted by Money Management's sister publication Super Review during the recent Association of Superannuation Funds of Australia (ASFA) annual conference, in Brisbane.
Importantly, respondents to the survey showed a strong preference for superannuation increasingly supplanting the age pension as the primary source of retirement income for Australians.
Noting that the Financial System Inquiry had recommended the development of an agreed objective for superannuation, respondents were asked what that objective should be with a substantial majority pointing to minimising reliance on the age pension.
Most respondents (64.8 per cent) said the purpose of superannuation should be enabling Australians to contribute to their retirement, minimising reliance on the Age Pension, while a further 27 per cent said it should be enabling Australians to live comfortably in retirement without recourse to the Age Pension.
Importantly, only 6.7 per cent of respondents suggested it should be about enabling Australians to contribute to their retirement ahead of accessing the age pension.
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