Kennedy distances Treasury from tremendous drawdown | Australian Markets
The Federal Treasury has no need to remove selection with respect to the way in which people draw down their superannuation balances, in accordance with the Treasury secretary, Dr Steven Kennedy.
Requested to touch upon studies of a Treasury dialogue paper proposing to set draw-down charges for retirees with more than $200,000 of their account, Kennedy made clear that his view was that decisions needs to be elevated with respect to how retirees spent their superannuation, not the other.
Answering questions from Queensland impartial senator, Gerard Rennick mentioned he didn’t disagree with feedback by the Senator about retirees being entitled to allocate their superannuation balances as they see match.
“I don’t disagree with anything you said,” Kennedy mentioned. “It is Important people have choice. And people may want to take super to retire debt.”
Kennedy famous that the chair of the Authorities’s Aged Care Financing Authority, Mike Callaghan had recognized the significance of home possession in post-retirement.
“We’ve engaged on the issue and the Government is concerned about people not being given all the choice they should around retirement products,” he mentioned, observing that superannuation funds had tended to be more targeted on accumulation than the retirement section.
Kennedy mentioned he believed policy-makers needed to be very cautious about eradicating selection.
“I do wonder whether this is an area where at least some nudging is required,” he mentioned.
Kennedy mentioned that Treasury was actually testing the speculation of people being assured to entry money they’d put apart for retirement.
“It’s not about taking away choice. It’s about people being offered enough choice,” he mentioned.
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