Australians have voiced an increasing demand for legislating an objective for superannuation, according to the Financial Services Council (FSC).
Consumer research from the FSC, conducted by research firm CT Group through focus groups in metropolitan and regional NSW, highlighted the rising support for super to have a focused objective.
This followed comments by minister for financial services, Stephen Jones, last year that it was important for super to have a defined objective.
Blake Briggs, FSC chief executive, commented: “Australians share a strong belief that the superannuation system should be designed with a singular focus on their retirement”.
The participants agreed legislating a distinct super objective would serve Australians better, with a focus on delivering income in retirement and determining how their money is invested.
He added: “Despite there not being a legislated objective of superannuation to date, Australians know what their superannuation is for and do not believe legislating an objective should open the door to political objectives, such as investing in nation building infrastructure”.
The research found that the objective should utilise wording specific to attaining a certain standard of retirement living. The industry-backed proposed objective was supported by all focus groups: “To provide an adequate income in retirement to ensure all Australians achieve a comfortable standard of living in retirement, supplementing or substituting the aged pension”.
“With an additional three million Australians retiring over the next decade, outcomes from the
Government’s consultation on the objective of the superannuation system must reflect the expectations of everyday Australians,” Briggs said.
“Government should seize the opportunity and move ahead on a simple definition that can be commonly understood by all Australians and that the superannuation industry is unified on.”
The CEO identified that a unified and enshrined objective would “lead to more stability in policy settings and end the cycle of constant tinkering which undermines confidence in the system”.
