Government’s Retirement Income Review will heat up SG battle
The Government appears headed for further conflict over superannuation with its Retirement Income Review report to be released today suggesting that increases in the superannuation guarantee come at the cost of wages growth.
The Treasurer, Josh Frydenberg is scheduled to release the long-delayed report today but Canberra briefings have already outlined its contents with key findings being that higher superannuation guarantee contributions mostly come at the cost of lower wage growth and that work-life income for most Australians would be around 2% in the long run if the super guarantee was kept at 9.5% (rather than rise to 12%, as already legislated)
The report also points to the availability of reverse mortgages and similar equity release products for retirees and the need for the Government to ensure that people draw down more fully on their superannuation savings rather than use the as a wealth transfer mechanism.
On the plus side for the superannuation industry, the report more broadly finds that the overall structure of the retirement income system based on superannuation, the age pension and personal savings is sound and needs little if any change.
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