Seems like a double edged sword.
If you cut tax breaks on super retirees, you’ll have more needing to go on the pension when their money runs out sooner.
It’s already an issue - a lot of people hit their super, then lump sum cashout. Go on a trip, buy a house, go on a general splurge and blow the lot…then turn around and go “pension now please!”
I can’t really fault some people, it’s the one time in their life they have enough money to live a dream, but it really is taking the mickey.
So a good thing would be to cap the lump sum, or even better tax the living shit out of it. You keep a break on the regular payouts, but a lump sum gets carved up.
Yeah, you’re right on that. I had in mind those with just enough super to get by, then if the tax concessions are wiped out, they would be in trouble.
I’m OK with caps on all sorts of things - as long as they are indexed or reviewed annually/regularly. None of this bracket creep bullshit.
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For the most part, super is insurance for the government. Force people to save some of their earnings for retirement so they don’t need government support in retirement. It’s more politically tenable than raising tax rates 10% and saying that money will fund retirees.
They should have always had limits on the tax concessions though.
