Australians moving past pensions

Australians are rapidly moving past  full reliance on the Age pension in retirement.

The compulsory superannuation regime, introduced by Paul Keating, is providing better results, on several fronts.

A senior Federal Minister, Chris Bowen, spelt that out in a speech he delivered in Melbourne.

He said the introduction of compulsory superannuation “…has meant we are all, collectively, saving more.

“The resultant national pool of wealth – which is available for investment in Australian companies, property and infrastructure – has been a crucial source of funds for our economy,” he added.

That had helped Australian industry, in the wake of the global financial crisis.

Mr Bowen, who is minister for Financial Services, Superannuation and Corporate Law, also said “The Age pension will inevitably continue to supplement retirement incomes in future.

“But a far lower proportion of retired Australians will be full pensioners,” he said .

“And a far higher proportion will be part pensioners,” Mr Bowen added.

He also quoted lines from Tony Abbott’s book, Battlelines, which Mr Bowen said  suggest that a Coalition government might slash the present tax concessions on superannuation, to fund abolition of the means test on Age pensions.

“That “would be a very retrograde step.”

“We rule it out,” Mr Bowen said.

“Mr Abbott should  as well,” he added.

So far there has been no response from the Opposition Leader.