“Super is for your retirement, not your kids”… Do you agree? 314



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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… 

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  1. I, like heaps of others, don’t have enough super to make a difference. Those that do, well they would have to decide if he is right or wrong.

    3 REPLY
  2. I just wonder if he’ll be verifying these comments when he retires, & don’t forget that will be at our expense, the taxpayer.

  3. Typical fat cat politician! The reality is, governments keep fiddling with super regulations and so we have absolutely no idea how much we really need to last the distance. There is even talk about taxing OUR money from OUR pension fund, because unlike politicians, we are supposedly getting something for nothing. How many times do we have to pay tax on the same money? The pension card alone is worth about $15,000 a year in medical, pharmaceuticals, etc. etc., so many retirees rely on this. Stop picking on pensioners!! 🙁

    1 REPLY
    • The government fiddling with the rules has absolutely nothing to do with how much you need, only how much you might have. And you are not paying tax multiple times on the same money. Please try to understand the details/facts before making (emotive) comments.

  4. His face irritates me as much as Joe hockeys does.

    13 REPLY
  5. My super is to do what the heck I want with it. I paid it in from my wages, so I think I can spend it as and when I choose.

    25 REPLY
    • Not for long. Soon taking a lump sum won’t be an option. The government will take your super and dole it out to you as they see fit. Probably set a percentage you are allowed per month. You can see it coming. When you die – it goes back to the government.

    • I agree Leone, it will come to the Govermentment saying “we estimate that your super should last you until x date. Come back and see us then about a pension,” but I’ve yet to find anything that says they can appropriate any of your money after you die, particularly if you have a will.

    • The Government puts in money too so they have the right to decide that you live off it. Not keep any of it after you die though. If you don’t have your funeral paid for by then then it should be used to pay for it and any bills you have when you die.

    • Govt puts nothing into my self managed super. I’ll never get a pension so I took charge of my own super. My investments and properties are mine to be handed on to family as I choose, if I’ve not spent it all by then.

    • The Government doesn’t put anything into my Super either. I’ve never earned enough to put extra in myself so all that goes into mine is my employer’s contribution…and I worked for that as it’s part of my salary package.

    • If that is what you really think, you should have put it in the bank at interest. Super IS NOT like banking..You cannot just withdraw when you feel like it otherwise there would be nothing left when you REALLY NEED IT!

    • Roger I understand superannuation, thank you for your concern. I put the majority into property. I have a good income from it and will sell off properties as and when I need more. Bit better than leaving it in the bank or in stocks. It’s mine, not the governments. I’ve already paid top tax rate through my working life. In retirement I’ll make my own choices.

    • The Govt is only allowing people to have 800,000K before they lose some, of their pension, NOT losing much, If Shorten gets his way you will be taxed 25%, . There are many ways to spend your pension, pay for your Funeral , Gift some money, buy a new car. before reportable date

      1 REPLY
      • The Labor proposal is to tax the marginal earnings after $75000 at 15 %. This is vastly different from your false statement that labor will tax your super at 25%. The labor
        Proposal means that you only start to pay the tax of 15% after your earnings reach 75000 and then only on the amount above 75000. So that if you earned $100000 you would pay $3250 in tax.
        Personally I think this is a reasonable idea but the threshold should be $92500. At this point the amount of normal income tax that would be paid on this income is equal to the current pension. So in effect superannuation would get a tax free break up to the amount equal to the pension. From then on the tax rate should be 15%

    • Where do You hear all these things the Govt are going to do, I and my friends nevr hear about it, BUT BILL will tax , anyone who has saved 25%

    • Dawn Bruce. As I understand it, labor’s proposal is that anyone earning over $75,000 per annum from their super fund, will be taxed 15% on the component over that amount. Seems fair and reasonable to me. At present, some are earning a few hundred thousand and paying no tax at all.

    • Also, you start to lose some of the pension as soon as your assets reach over $375,000 for a couple and $200,000 odd for a single in this governments budget, from January 2017. Then you lose $3 per every $1000 over instead of the present $1.50. Quite a change.

    • Dawn Bruce I have paid for my Funeral after my Husband passed away suddenly, bought a new car and I don’t intend leaving any to my two boys they are far better off than we were at there age so I have joined the SKI Club spending the kids inheritance, b,because what ever you leave them they will soon spend it.

    • yes Dawn – but U can only “gift” $30,000 max then U can’t “gift” for another 5 years so correct me if I am wrong – not happy !!!

    • Yes Judith what money does the government pay my husband paid so much and the company put in a percentage at no point did the government unless you were on the public service but then that is what they have to contribute

    • Christa. You are right. Trouble is they spread the wrong message to others, and it becomes fact to a lot of them.

    • Dawn Bruce. I think you worry needlessly. If I am correct you were forecasting sharia law on another site.,were you not?

    • Robyn Green, if you are a self-funded retiree you won’t get a pension so it is up to you what you do with your money. Why should wealthy people get a pension when they have plenty of money.

    • Emily Mary Wallis if you read my comments that is EXACTLY what I’ve said. I will never get a government pension. I don’t want one. I have control over my own super and my own life. The article was related to superannuation, not pension. As a result I will have no one telling me what I can and can’t do with my own self managed superannuation.

  6. Because of polititions like him, we have very little in the kitty . But it won’t worry him or his cronies as we(the used to) tax payers are funding a very healthy superannuation scheme for them to retire on and I am sure that their children are happily envisioning what they will receive when the ex treasure or whomever pass on.

    1 REPLY
  7. There is actually a lot of truth in what he is saying, of course super is to spend on your retirement (regardless of how much you actually have).

    1 REPLY
    • I agree with you. Luckily my children encourage me to spend and enjoy my money. Now and in retirement.

  8. I’m sure governments in the future will find ways of making sure our kids never get a cent.

    5 REPLY
    • I read financial reviews and some are telling the next generation not to put extra into their super because they won’t be able to draw a lump sum. By then the super you save will be nationalized It lists countries that have already done that. Those who die early will not be able to leave any super to their kin because that money will be used to fund those who live the longest. That – is “100% inheritance tax”

    • But if the money was deducted from your pay it is NOT the governments money to keep. That is so wrong.

    • I honestly think they will bring back death duties, so if there is anything left, they will take it anyway

  9. Is this the same Scott Morrison who accused young mothers of being leaners and rorters and then had to admit his own wife was guilty of the very same things he condemned them for. Hypocrite!

    3 REPLY
    • It wasn’t either. It was Matthias Cormann and what his wife got was legal but they want to stop it. When they tried to bring in a ppl everyone was against it, now they want to stop double dipping everyone’s against it. They really can’t win!!!

  10. Of course it should be for your retirement. Why should you leave it for your kids. You have scrimped and saved to get them a decent education it is up to them to continue the trend and put money into their super so that they too , when they get to mature adults will have enough to fund their retirement and so on.

    8 REPLY
    • Considering they now have compulsory Super, by the time they get to our age they won’t be in our position. Let them stand on their own two feet. No-one gave me anything and I brought up a child as well

    • Spot on Wendy. The little super that we had paid off the last of the mortgage. Now we live from one pension to the next, and we are grateful for what we get.

    • These clowns don’t know what’s going on, one minute they tell us that baby boomers are all out there spending the kids inheritance now they are saying we are saving it to give to them, can’t wait for them to be voted out.

    • When it comes to super none of the parties can get it right. Does matter who gets in they all stuff it up.

    • The Alp started super, they know what they are doing and I voted Liberal and I agree with you Lynn, the sooner they are voted out the better

    • Not everyone will have ongoing jobs, so every one will still need the pension at some point.

    • Get real, I lost money in Super when ALP was in because it was invested incorrectly. Also what govt would take it out as even libs know that it is worthwhile. By the way this is not a party site

    • How do you know. I worked all my life. Have never received benefits, including the dole. When I wanted some help my husband was earning more than $1600 a month so I have had to depend on my Super. thank god I had some because I don’t know how we would have coped.

  11. The only party who are talking about taxing super is the Labor Party @ they have done it before.

    4 REPLY
    • Only for those earning very high amounts on their super it would impact the majority of people. I think the were talking $75,000 per year income from your super nest egg not the egg itself.

    • Your correct Barbara, they are saying if to have at least 1.5 million & receive $75,000 income from it you will start paying15% tax (not counting your home ) on that $ 75,000 only, think that’s fair enough! better than LNP ideas.

    • Lyn I think it is only on income above the $75,000, so the LNP is really just scare mongering the majority of people won’t be impacted and those that are it is only on the income above $75,000.

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