Many Australians will never achieve sufficient savings to meet their future income target.

Low rates threat to retirement

Changes to superannuation policy played a role in the significantly reduced majority for the Turnbull government at the July 2 election, but if you look a little deeper you find something far more interesting – the government can’t afford its retirement policies, and some retired people can’t afford to live.


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Totally correct. And the changes to the Centrelink Asset Test that commence 1 Jan 2017, in conjunction with the proposed $500,000 lifetime non-concessional super caps are twin measures that over the long term will make it even worse. Totally clueless.

I don't think older Australians are going to be a blockage in the career paths of younger Australians, many of them find it very difficult to find employment from their 50's onwards. Low interest rates are a real issue but you don't have to play the speculative end of the stock market to get reasonable returns on your investments.

A well thought out article. Jan might be able to get a decent return on investments but with less than $200K in my Super, I don't envisage I will have enough when I retire, to live on comfortably. Our elective representatives seem to have forgotten the purpose of the compulsory superannuation legislation. It was to allow people to accumulate wealth sufficient to remove them from reliance on the government sponsored Aged Pension. If they keep reducing and penalising the savings paradigm, how do they believe the retirees of our community will be able to survive if not by access to the Aged Pension? My mother has worked for 50 years, and can't afford to retire at 71 because she owns no home (and rents are excessive) and the little she earns barely covers her bills let alone leaves her any funds to enjoy her older years. Not the government's fault but a situation that affects many older Australians. In 1990, her annual salary was $26,000. In 1980, she says it was $14,000. There was never going to be sufficient savings and when she lost her home in a period of 17% interest rates, she never had the opportunity to purchase again. No wonder people have become disillusioned with the political process, that the major parties can't focus beyond the next election cycle. At least the introduction of the compulsory superannuation scheme was a far reaching ideal. I wonder if our elective representatives, if presented with the same choice, would be able to legislate in the affirmative? I have my doubts...

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