Summary: People with $2 million in superannuation are suddenly declared rich, but if their return is only three per cent, their annual income is just $60,000. I fear the introduction of a 15 per cent tax rate on all income earned by super funds in pension mode. Other ideas are being canvassed publicly, many of which I regard as horrific, such as a flat tax on all earnings by people aged over 65.
Key take-out: The pressure from younger people to make changes to the super system is considerable. It’s very foolish for the superannuation movement to make super irrelevant to them.