With the political landscape uncertain with the coming election all eyes are now waiting to see how the Liberal budget deals with many issues.
In the lead-in to the budget, Australia has the debate over superannuation back to front. All the attention is on the accumulation phase - contribution rates, contribution caps and how to use super to fix the deficit. While never far from the political spotlight, the debate on super reaches fever pitch ahead of pre-election budget.
What we should focus on is what people need to fund retirement, how they use their savings and what factors affect their decisions.
From there, we need to work backwards - ensuring we have the structures, goals, products, regulation and guidance needed to help people live long and fulfilling lives in retirement without running out of cash, or breaking the public purse.
In all of this, the focus in this budget, and for the future policy, should be on adequacy, equity, efficiency and sustainability.
The task is enormous, there is curently $2 trillion in superannuation funds, expected to be $9 trillion by 2041. There is a wave of about 5.5 million "baby boomers" moving into retirement with the first few decades o this century. The proportion of Australian's over 65 is expected to raise from 14.2%t in 2012 to 21.6% in 2040.
With all of the possibilities available, but with non of us having a crystal ball we will advise you of the outcomes as we see this after the budget announcement.
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