The federal government drafted laws aimed at defining the objective of superannuation in 2016, but the bill has been put on hold indefinitely. Meanwhile, KPMG partner, Paul Howes, claims the super industry has not been able to introduce products that would help retirees to draw down on their savings in a sustainable way due to the lack of legislative action on the issue. The former union official says the objective of super should be to provide sufficient income for a “dignified retirement”, rather than being a vehicle for intergenerational wealth transfer. From The AFR:
“We want the system to hopefully be designed in such a way to create a smooth path from the day of retirement through to death, with an account balance enough to provide a dignified retirement,” he said. “It should not be a vehicle for intergenerational wealth transfer, nor should it be viewed as a way to do anything other than to provide that dignity and longevity in retirement.”
