Industry Super Australia (ISA) says far-reaching changes to the age pension should not be rushed through the Senate without regard to a careful rebalancing of the whole retirement income system, particularly taking into account super tax breaks that flow disproportionately to high earners.
“Super and pensions are two sides of the same coin for millions of workers and any changes need to be considered in tandem,” said David Whiteley, Chief Executive of Industry Super Australia.
“Our parliamentarians must adopt a measured and evidence-based approach to any changes to retirement incomes policy and quarantine it from the budget and electoral cycle.”
Mr Whiteley said if there is to be a six week extension to the review of tax and retirement income, lawmakers should at the very least take the opportunity to thoroughly examine the large body of evidence-based submissions to ensure the impact is fully understood.
According to data produced by actuaries Rice Warner and ISA, the proposed changes will impact most heavily on middle to low income workers earning average wages of $75,000 or below, and women most severely.
“One of the most troubling outcomes of this proposal is that around 80% of single women retiring in 2055 will be disadvantaged,” said Mr Whiteley.
“As it is, around 63% of single women will not be able to retire comfortably through to 2055, even with super, pension payments and other savings combined. This measure will deepen that inequity.”
Other impacts indicate:
“Constant tinkering and speculation on one aspect or another of retirement income policy in isolation is risking the broad-based community support for superannuation,” said Mr Whiteley.
“No changes should be rushed through the Parliament until all stakeholders and policy experts have had an opportunity to make submissions to the retirement income review process.”
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“Super and pensions are two sides of the same coin for millions of workers and any changes need to be considered in tandem,” said David Whiteley, Chief Executive of Industry Super Australia.
“Our parliamentarians must adopt a measured and evidence-based approach to any changes to retirement incomes policy and quarantine it from the budget and electoral cycle.”
Mr Whiteley said if there is to be a six week extension to the review of tax and retirement income, lawmakers should at the very least take the opportunity to thoroughly examine the large body of evidence-based submissions to ensure the impact is fully understood.
According to data produced by actuaries Rice Warner and ISA, the proposed changes will impact most heavily on middle to low income workers earning average wages of $75,000 or below, and women most severely.
“One of the most troubling outcomes of this proposal is that around 80% of single women retiring in 2055 will be disadvantaged,” said Mr Whiteley.
“As it is, around 63% of single women will not be able to retire comfortably through to 2055, even with super, pension payments and other savings combined. This measure will deepen that inequity.”
Other impacts indicate:
- Single males currently aged 25-29 on incomes between around $27,500 to $143,000 would be adversely affected by the proposed cuts to the age pension.
- Single males currently aged 45-49 on incomes between $56,000 to $183,000 would be adversely affected by the proposed cuts to the age pension.
- Single males currently aged 55-59 on incomes between $52,000 to $160,000 would be adversely affected by the proposed cuts to the age pension.
“Constant tinkering and speculation on one aspect or another of retirement income policy in isolation is risking the broad-based community support for superannuation,” said Mr Whiteley.
“No changes should be rushed through the Parliament until all stakeholders and policy experts have had an opportunity to make submissions to the retirement income review process.”
- See more at:
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