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Aged pension too disadvantages own savings for superannuation

Comments on Sally Rose "Million-dollar super targets labelled scare campaign", 4/08/2015

The aged pension is too discriminatory against savings from own superannuation contributions, in terms of once a person reaches the threshold, he/she does not get any aged pension. Just compare two persons with almost identical situations in terms of wages and salaries, but one saves, say 5%, more for superannuation and the other doesn't. If the person with own contributions to super just reached the threshold income for aged pension. The person will have the same income with his/her superannuation as the other one with aged pension. The same outcome, but the person with additional contribution to own superannuation has sacrificed its living standard for almost nothing. Worse still, own superannuation may not be index as generously as the aged pension.

Is it fair? Obviously it is not.

As a result, there should be some reforms to the aged pension system to encourage people to save without adversely affecting their entitlement to aged pensions.

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