Key points from superannuation report

An investment returns statement with ball point pen. Note shallow depth of field focus on ball point pen.

(Australian Associated Press)


* Gradually increasing the preservation age to 65 would deliver the budget $7 billion a year in 2055, mainly because of tax revenue from wealthier households.

* Households would be likely to delay their retirement by about two years and will have super balances about 10 per cent larger when they retire.

* There will be a modest two per cent increase in the workforce participation of older Australians in 2055, mainly among those with higher wealth or near retirement.

* Changing the preservation age will have little, if any, impact on many older Australians who retire involuntarily.

* An appropriate safety net would have to be a priority for those who become involuntarily retired.

* Less than 30 per cent of superannuation benefits are taken as lump sums.

* When lump sums are taken they’re most frequently used to pay down debt, invest in income stream products and buy durable goods that are used through retirement.

* Any changes to the system should cater for diverse circumstances, because “one size” does not fit all.

(Source: Productivity Commission research paper Superannuation Policy for Post-Retirement).


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