Workers and pensioners have given a firm thumbs-up to the federal Budget’s tightening of the age pension, according to research commissioned by AustralianSuper.
78% of workers and 88% of retirees support the tightening of the age pension assets test, which makes it more difficult for wealthier pensioners to qualify, and increases payments to poorer pensioners.
The research also indicates that today’s workers do not expect a free ride when they retire. More than three-quarters (76%) of workers expect it will be harder to qualify for the pension when they retire than it is today. This sentiment is felt most strongly by Gen X workers (82%), ahead of Baby Boomer workers (74%) or Gen Y workers (70%).
Three in four working Australians believe the government feels it can dip into workers’ super to plug holes in the budget. An overwhelming majority of people are also tired of governments tinkering with the superannuation system, with 75% of wage earners reluctant to put extra money into their super because of frequent rule changes.
76% of workers and 81% of retirees wanted responsibility for the taxation of super transferred from government to an independent body, to help ensure more certainty and stability for the system.
AustralianSuper’s Group Executive, Membership, Paul Schroder, said, “The results of the research suggest a growing realisation amongst younger workers that they’ll need to provide for their own retirement, rather than rely on government support. They can do this by making regular, voluntary before- or after-tax contributions. But before they’re willing to invest more in their super, they want greater certainty and less government interference in the super system.”
Source: Australian Super
