Make access to super lump sums conditional
Accessing superannuation lump sums should not be abolished but it should be made conditional, according to new survey research conducted by Money Management's sister publication, Super Review.
The survey, sponsored by Pillar Administration and conducted during the recent Conference of Major Superannuation Funds, found that while almost all superannuation fund executives and trustees believed it would be wrong to abolish access to lump sums, most believed it should be made conditional.
The survey questions were formulated in the wake of the release of the Intergenerational Report and amid concerns about continuing reliance on the age pension.
However it also came at the same time as a roundtable acknowledged that, for those with low superannuation account balances, the best option might be accessing a lump sum to pay down debt before access the age pension.
Asked whether lump sums should be abolished, 85.8 per cent of respondents more than half of whom were either super fund trustees or executives answered "no", but their attitude was very different on the question of making access to lump sums condition.
On the question of making access limited and conditional, 53.8 per cent of respondents answered "yes" with 46.1 per cent disagreeing with the proposition.
Importantly, the same survey pointed to strong support for the taking of income streams.
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