The Government’s plan to increase the pension age to 67 and thus locking up superannuation funds until workers reach this age, will hurt the economy says the Australian Institute of Superannuation Trustees head Fiona Reynolds.
According to Ms Reynolds, lifting the pension age to 67 does not benefit consumers, or the economy.
“”Lifting the preservation age does not benefit super consumers, promote growth in the national savings pool or build confidence in super as a long-term investment for security in retirement,” Ms Reynolds said.
Reynolds believes that the new plan will discourage people from topping up employer super and if people move away from superannuation it’s a problem for the economy, as superannuation “plays a vital and growing role in nation-building investments.”
She believes it will discourage younger workers in Gen Y and Gen X from contributing to their super as they will not be able to access it until they are 67.