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Not enough value in super system, says Murray
Former CBA boss David Murray said if there aren’t clear improvements to the superannuation system, the industry will have to question if Australia would have been “better off” without it.
Speaking at a breakfast in Melbourne for the SMSF Association, Mr Murray stressed the importance of having clear objectives for the superannuation system to ensure its future efficiency and success.
“The only priority of the superannuation system should be to provide income in retirement,” he said.
“If you have a mandatory regulated superannuation system, then it’s more likely that it remains politicised. Hence the need for the objective.”
If objectives for the superannuation system aren’t firmed up and adhered to, questions over the effectiveness and usefulness of the superannuation system will be inevitable, Mr Murray said.
“If we don’t make some improvements, we will increasingly have to ask the question: would we have been better off without this system? Would people have saved just as much anyway? Would they have invested that wisely themselves, in whatever way they do, and would we have been better off?” Mr Murray said.
“It’s not clear that we’ve made an overwhelmingly strong start in the superannuation system, there are a lot of people who only started at three per cent who won’t have adequate outcomes in retirement. We need to clarify that objective and get the system depoliticised and as simple to operate as we can,” he added.
He's kidding right?
Many Australians struggle to save for a holiday or a car let alone 9.5% of their gross salary for retirement.
My thoughts exactly Wildcat.0- Spoken like a true (ex)banker who has enjoyed the substantive salary that provided and with I suspect a well endowed SMSF.
I have spoken to many people, ordinary wage earners, who have said that if not for our compulsory super system they would not have a thing put away for retirement.
While Mr Murray correctly says that many Australians started out with 3% super, those retiring now have only had the benefit of that system for less than half their working lives.
Those that enjoy the benefit of the system, at its full rate, for their entire working lives will greatly benefit from it, and even if they don't receive to motzas high paid bankers and others can look forward to, it will make a substantial and meaningful difference in their retirement years.
Maybe Mr Murray and others that talk the SG down might consider getting on board 'Team Australia'.0 - He's kidding right?
Many Australians struggle to save for a holiday or a car let alone 9.5% of their gross salary for retirement.
Did he really say this or out of context?
I would normally regard him better than that0
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