Super needs to be reconceptualised

The superannuation industry needs to transform the concept of retirement away from recreation and consumption towards a higher purpose, the Association of Superannuation Funds of Australia (ASFA) believes.

Speaking at a reception, ASFA chief executive, Martin Fahy, said retirement was currently defined by recreation and as a consequence meant consumption.

Fahy said this definition was inwardly focused, unfulfilling, expensive, and economically draining.

"Somewhere out there, and I think this is a challenge for Baby Boomers, somewhere out there we need some way of transforming our concept of retirement away from recreation and associations with consumption and towards a re-creation of a higher purpose that gives definition to retirement. And that will sit uncomfortably with many people," Fahy said.

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"The key players in this will be Baby Boomers. As much as we like to frown upon their frivolous life in what they have achieved, in reality we're just jealous. They reinvented relationships, sexual intimacy in the 1960s, the protest movement, drugs, sex, rock ‘n' roll, Bob Dylan, and now we need them to reinvent retirement.

"We need them to reconceptualise retirement away from a short five year period of recreation as you lead to your demise into a 25-35 year engagement with a higher purpose."

Fahy said the reconceptualisation of retirement on a societal level was a huge challenge and where it would come from was a mystery.

"If we need to make a shift away from retirement recreation consumption then we need to be able to contribute to a higher purpose and I'm not sure what that higher purpose is or where it will come from but it needs to be achieved," he said.