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Low-income earners should not opt out of super
The Australian Institute of Superannuation Trustees (AIST) has shut down calls to allow low-income earners to opt out of super, arguing it would have ramifications on part-time workers and women who currently retired with about half the super of men.
The peak body for industry funds said the move would not be in the interests of the long-term fiscal sustainability of the retirement income system, or future generations of taxpayers to fund the Age Pension.
The comments came in response to media reports that reported on a pre-budget submission from an unnamed industry group, which proposed that those earning less than $37,000 a year should not have to contribute to their superannuation, and could effectively receive a 9.5 per cent pay rise if they were to take home their super.
AIST executive manager policy, David Haynes, said the long-term benefits of super should not be underestimated.
"Super is not the solution to plugging budget holes or lifting wages — it's about improving retirement outcomes for all Australians and that includes those on low incomes," he said.
"It doesn't matter if you are a full age pension, a part pensioner or a self-funded retiree, every extra dollar of super makes a difference."
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