The federal government should intervene to help retirees spend their superannuation and avoid the savings system ending up as 'a massive inheritance scheme', the Grattan Institute warns.
Half of those with an account-based pension are drawing down their super at the legislated minimum rate, a Grattan Institute report finds.The Grattan Institute is proposing a government-backed annuity, or "fixed pension" scheme, to encourage retirees to draw down their superannuation balances.
A report into superannuation by the think tank finds few retirees draw down on their super as intended. "You're asking people to draw down their savings when they don't know how long they're going to live. Australia's super tax concessions will cost the government almost $60 billion in 2025-26, which is $9 billion more than expected. How can we afford it?
Grattan is advocating for retirees to be strongly encouraged to put 80 per cent of their super balance above $250,000 into a government annuity as a default option, saying such a reform could boost retirees' incomes by up to 25 per cent.Govt intervention required in super system: Grattan
Super Retirement Retirement Savings Savings Election 2025 Grattan Super Policy Economic Policy Super Funds Intergenerational Wealth Wealth Cost Of Living Pension
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