(An expanded version of my earlier article entitled The Use and Abuse of Superannuation)
Even those who do not like him will acknowledge that Australia owes a huge debt of gratitude to Paul Keating.
During his term as Prime Minister two decades ago, he established compulsory superannuation despite a hostile Opposition that declared it to be a step towards socialism.
A few weeks ago, I chaired a Per Capita function in Sydney at which Keating reminded the capacity crowd that the original intention of his superannuation legislation was for everyone to accumulate as much Super as possible thereby ensuring that, in all of our retirement years, we could enjoy a lifestyle better than that which is the lot of someone who struggled to survive on the age pension.
The Keating plan was for every one of us to draw down all of our superannuation capital and income within our anticipated lifetime. It was never ever intended that anyone would leave their Super as a legacy to their family. Such a legacy is, in reality, a taxpayer funded gift. Continue reading “The Superannuation Revolution”