The Australian Institute of Superannuation Trustees (AIST) has warned against raising the preservation age for superannuation, in the wake of the Government’s Budget decision to lift the retire¬ment age to 67.

AIST says lifting the superannuation preserva¬tion age would discourage super as a savings vehicle “and ultimately harm the Australian economy”.

“If people move away from superannuation, it’s not just a problem for the super industry, it’s a problem for the whole economy, as superannuation plays a vital and growing role in nation-building investments,” AIST chief executive officer, Fiona Reynolds, said in a statement.

Reynolds said the global financial crisis (GFC) had already led to a drop in voluntary superannua¬tion contributions, and a higher preservation age would simply be another disincentive for people to provide for their own retirement.

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