Super should be user-friendly
It is vital to allow access to super balances to fund home ownership.
Former Macquarie Bank executive Bill Moss recently highlighted (The Australian, November 23) the extent to which compulsory super has frustrated the home ownership hopes of many Australians. His guesstimate is 50 per cent of working Australians are now frozen out of home ownership, compared with 20 per cent in earlier times.
Moss also observed that our superannuation industry is focused on maximising funds under management rather than on member outcomes. This is evident from their universal support for an increase in the compulsory super contribution rate and increases in the preservation age.
In the meantime, ordinary Australians are losing out not only in terms of achieving home ownership but go through unnecessary hardship in periods of unemployment and other personal crises. If this situation is not addressed, these problems will be exacerbated by the latest proposals to tie up super until as late as age 70. These proposals come from the bureaucrats and economic rationalists, many of whom have access to lifetime-indexed pensions at age 55. If these advisers have their way, life will be even tougher for younger families and others who lose their job well before the compulsory superannuation preservation age.
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