Industry Super Australia (ISA) has urged the government to rule out allowing early access to superannuation as treasurer Joe Hockey raised the possibility of loosening super rules.
On Friday, Mr Hockey suggested the government may consider allowing young people to use their superannuation savings for a house deposit, according to a report in the Sydney Morning Herald.
"We need to have these conversations," he said.
ISA chief executive David Whiteley slammed this idea, urging the government to keep super inaccessible until retirement.
“Such proposals are completely at odds with the objective of encouraging Australians to build private savings to take pressure off the aged pension,” he said.
“The government should rule out such proposals immediately.”
He suggested the move could inflate house prices and reduce retirement savings over the long term.
“Super funds could also face increased liquidity demands, undermining optimal asset allocation and potentially reducing investment returns to members,” he said.
Mr Whiteley acknowledged current policy settings were failing to deliver a comfortable retirement for some Australians but said the government had other options available.
“Most obviously the government could more efficiently distribute tax concessions, ensuring that all taxpayers are incentivised to save for their retirement, and protect the super safety net that ensures members who do not choose their own fund are defaulted into a well-performing fund,” he said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 16 Nov 2018Government sets $51m to pursue misconductBy Eliot Hastie
- 16 Nov 2018The financial advisers most people don’t read aboutBy James Mitchell
- 16 Nov 2018Clients expect advisers to understand their situationBy Eliot Hastie
- 16 Nov 2018Retirees hit hardest by franking credit changes, says FSCBy Sarah Simpkins
- 16 Nov 2018Trust in advice more important than everBy Stephanie Aikins
- 15 Nov 2018We’ll lose advisers through FASEA but it’s necessaryBy Adrian Flores
- view all