As Julia Gillard yesterday refused to rule out changes to super, Industry Funds Management chairman Garry Weaven, who helped design the landmark Labor reform as a top union official in the 1990s, declared it was “time for a pause” in the constant amendments to super tax rules…
It is about time to settle on the rules and stick to it. I wonder how many changes there have been since the baby boomers who are reaching retirement age now left school and joined the workforce. It has been impossible to keep up with the changes.
What will be there for those who retire in the next five years?
I suspect that the bulk of baby boomers are getting nervous. Combine this with the fact that super was not compulsory for the first 15 to 20 years of the baby boomers working life, and the contributions were based on the much lower wages of that time. There have been several financial downturns which eroded savings which haven’t always been negated by the good years.