The SMSF Association has added its voice to those urging against making piece-meal changes to superannuation policy, arguing for a holistic approach.
Commenting on the recent Productivity Commission analysis of superannuation policy for post-retirement, SMSF Association chief executive, Andrea Slattery said that, ultimately, significant changes to superannuation policy in the post-retirement phase should be considered in the context of the broader retirement income system encapsulating social security, superannuation, and tax policy.
Slattery broadly welcomed the Productivity Commission report as making an important contribution to the debate around retirement income policy structures, but specifically cautioned against too quickly moving towards lifting the superannuation preservation age.
She said her association was wary of such suggestions and believed claims that such a move could lead to benefits of increased retirement savings balances and savings to Government revenue needed to be heeded with caution.
“Increasing the preservation age is a complex policy option that can impact those that are unable to work past 60 due to illness or physical issues or are retrenched late in their careers,” Slattery said.
She said such people might be forced to rely on social security, so sufficient flexibility should be maintained for them to access their superannuation savings when appropriate.
“Ultimately, significant changes to superannuation policy in the post-retirement phase should be considered in the context of the broader retirement income system encapsulating social security, superannuation, and tax policy,” the SMSF Association CEO said.
