Government backs super to support our ageing population
Australian Treasurer Jim Chalmers has released the Intergenerational Report (IGR) today, giving Aussies an insight into how current policies might impact the economy in the long-term.
Superannuation is among the many focal areas of the report, its aim to suitably support ageing Aussies financially but also reduce aged pension costs.
Also of note is that Australia is set to spend the least amount of money on pensions compared to other OECD nations by 2035.
With an estimated population of 40.5 million Australians by 2062/63, the IGR predicts that the current number of people aged 65 and older will double to 9 million. It’s expected that in older age groups, this figure will multiply too, with Aussies over 85 being threefold, and a six time increase for people older than 100.
While the federal government’s healthcare budget might have been strained with an ageing population, Chalmers says the intergenerational set-up of superannuation will still work to support ageing Aussies and reduce spending on the aged pension.
Super savings to fund retirement living
Chalmers was quoted in the Australian Financial Review as saying that as super delivers on its promise over the next 40 years, budget outcomes will improve and Australians will be provided with a better retirement.
In short, this means that more emphasis has been placed on superannuation to reduce the budget of aged pensions.
Changes in the super guarantee rate to increase employer contributions is an example of preventing some costs.
So, as super might have a large impact on how much you’re able to spend in retirement, laying the groundwork now means setting yourself up for the future.
If you’re eager to know more about super topics, check out our superannuation guides and start preparing for your retirement.