Enshrining a legal definition of the purpose of superannuation would benefit all Australians after years of early withdrawal policies have seen balances dwindle.
About $36 billion was drained from Australian superannuation accounts in 2020 alone as part of the former government’s pandemic response.
And while those withdrawals of up to $20,000 per person may have provided a salve to pandemic-induced financial pain, it is money that would appreciate many times over in the decades to come had it stayed in super accounts.
This and other early withdrawal policies have muddied the waters on what has always been the purpose of super – to provide Australians with a dignified and financially secure retirement.
Enshrining a legal definition of the purpose of super, as the current federal government is seeking to do, would end the argument once and for all.