“CPSA did not find the RaboDirect survey findings that baby boomers will not have enough superannuation to fund their retirement at all surprising” said Research/Policy Officer, Amelia Christie.
“Only 11 per cent of current retirees have superannuation as their principle source of income.
“The current system has failed to take pressure off the Age Pension. Not only are current super arrangements, such as the work test, disadvantaging older workers who are most in need of topping up their super before retirement, the current superannuation tax concessions disproportionately benefit high income earners.
“In 2011-2012 the Age Pension cost $34 billion. Yet Australian taxpayers contribute nearly 80 per cent of this amount ($27 billion a year) in super tax concessions.
“If Australia is serious about ensuring that all retirees have adequate incomes, then the superannuation system needs to have adequate checks in place to ensure that the retirement gaps between high and low income earners do not continue to grow.
“Alternatively, the tax revenue forfeited as a result of superannuation concession is such that it is reasonable to ask the question whether it wouldn’t be better to increase the Age Pension and do away with subsidised superannuation altogether,” said Ms Christie.
CPSA represents pensioners of all ages, superannuants and low-income retirees. CPSA has 137 Branches and Affiliated Organisations, with a combined membership of 30,000 people.
Media Contact: Amelia Christie, Research/Policy
Mobile: 0410 612 182