No need to define the purpose of super for pre-retirees
The purpose of superannuation is "crystal clear" for the majority of Australians in their 50s and early 60s, new research reveals.
Data from a survey conducted by National Seniors Australia and commissioned by Challenger, found that 83 per cent of pre-retirees expected super to provide an income streams for their post-working lives.
While the Government has considered setting out the objective of super, Challenger chairman, retirement income, Jeremy Cooper, said the survey showed there were few doubts about its purpose in the minds of those closest to drawing down on their super.
"For senior Australians the objective of superannuation is crystal clear," he said.
"It's about retirement income. It's critical for retirees to have a steady, dependable income from super to sustain their lifestyle in retirement."
The results reflect a similar finding from the National Seniors Australia's 2015 report, which found 80 per cent of pre-retirees believed that super should provide an income stream for retirement.
While the majority of those late in their working lives seek super as a source of income for retirement, many expect Government pensions and allowances to supplement their income from superannuation.
"This shows that older Australians understand that while super is the main game for retirement, the Age Pension can make up a meaningful proportion of retirement income," Cooper said.
"This can be comfort to many Australians, but it's there as a back-up, not a catch-all."
AUTHOR
Nicholas O'Donoghue
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