On this episode of The ifa Show, Martin joins host Sarah Kendell to discuss what can be expected from the government’s review into the system, the benefits of establishing a clear vision for superannuation and retirement, and the problematic nature of defining “adequate” income for retirement.
Martin also reflects on whether the review will tackle the issue of keeping the family home outside of the income testing procedure, how financial literacy levels affect the challenges faced by retirees, and what he predicts the retirement system could look like in the future.
The purpose of superannuation is (and must be) to reduce the cost of the Age Pension.
The government must define how this transition (i.e. pulling back the Age Pension and using super to replace that income stream) will occur over time as the SG system matures.