Social Services Minister, Scott Morrison has made some controversial statements about superannuation and they’re something that everyone will have an opinion on…
He has urged retirees facing toucher pension assets tests to actually spend their superannuation (as it is intended for) instead of hoarding their superannuations savings to pass on to the children.
It is allegedly quite a problem with the pension where people of massive wealth are claiming government funding with the goal that one day, they’ll leave a financial legacy to the kids. But that lifestyle cannot be that good.
When you have more money to live on with super, why would you choose to live under the breadline on the pension?
“The purpose of providing tax incentives to encourage people to build up their super is so they can draw down on it in retirement, not maintain it as a capital pool to be passed on as an inheritance,” Mr Morrison told the Australian Financial Review.
Essentially what Mr Morrison is saying is that the pension is there as a safety net for those people who actually need it, not to harvest wealth for younger generations of Australians.
So tell us today, do you actually agree with him? Do you support his comments? Share your thoughts in the comments below…