The majority of older Australians (59-plus) object to the Government exerting any more influence on changes to super — not just tax tinkering but restrictions on lump sum withdrawals and increasing the preservation age — a National Seniors survey has found.
It said 86 per cent of respondents objected to the Government making any more changes to super, although 70 per cent were not confident the rules would stay stagnant until they retired.
National Seniors chief executive Michael O'Neill said the survey rebutted the idea that people planned to blow their retirement savings, as over 85 per cent said they had no plans to rely on the age pension in retirement by taking super as a lump sum. Over half objected to restricted access.
Just under 40 per cent intended to or did take a combined lump sum and income stream, while 26 per cent planned or did rely purely on an income stream.
Of the 14.3 per cent that intended to take super as a lump sum, 29.3 per cent said it was for re-investment and 26.3 per cent planned to pay off the mortgage, National Seniors found.
O'Neill said changing the rules was not fair on the people who made voluntary contributions by foregoing other things, such as paying off the mortgage or going on holidays. He said changes were not happening within a wider retirement income strategy.
Despite actuarial reports that show that people now live longer, 64 per cent were opposed to raising the preservation age.
Although the Financial Services Council's Bond reports show discretionary contributions were in decline for a year until the last December quarter, 90 per cent of respondents said they made voluntary contributions. The majority that did not said they had no money to spare or made alternative investments.
The Actuarial Institute released a white paper last November that advocated increasing the preservation age and restricting access to taking super as a lump sum.
