Paul Keating says raising superannuation to 12 per cent will 'barely cut it'

| 14.11,18. 04:12 AM |

Paul Keating says raising superannuation to 12 per cent will 'barely cut it'

Paul Keating on the state of superannuation in Australia today (7.30)

Former prime minister Paul Keating has rejected a Grattan Institute report that suggested scrapping plans to raise compulsory super payments from 9.5 per cent to 12 per cent, and raising the retirement age to 70.

Mr Keating, whose government introduced compulsory superannuation contributions, said Grattan Institute chief executive John Daley had a "miserable view" of the world.

Mr Keating told 7.30 that super payments had to be raised to 12 per cent, though that would "barely cut it".

"When I introduced super 32 years ago, people retired at about 65 and they died about 83 or 85," Mr Keating said.

"In the 30 years since, people are living three to five years longer, so people now live into their late 80s and the superannuation pool isn't large enough to maintain the sort of standard of living we wish for them."

The Grattan report also suggested including the family home in the Age Pension assets test where the home value is above around $500,000.

Mr Keating said Mr Daley "doesn't get it with his miserable view about having the two Australias".

"The privileged Australia where the wealthy people can have all sorts of assets but ordinary people are condemned to the pension. This is $460 a week. I mean don't whoop it up on 460 bucks a week. This is the John Daley view of the world," he said.

"Daley's recommending people work till 70, put their house in the assets test where now it isn't. In other words, you eat your house.

"Work till 70, eat your house, and then basically find yourself at a certain point in your life where you just don't have financial assets."

In response, Mr Daley told 7.30, "If Paul Keating actually read our report rather than repeating ASFA [Association of Superannuation Funds of Australia] talking points, he would know we don't advocate 'two Australias'".

"With 9.5 per cent compulsory contributions almost all workers will have quite a lot of retirement income from super," he said.

He said that on 9.5 per cent, "very few Australians will be on a full age pension until late in life".


(Votes: 0)

Write Your Comment

Other News

Bourke Street driver James Gargasoulas found guilty of six murders 'Popular and hardworking' Victorian worker dies after explosion at Yallourn Power Station قوى الأمن الداخلي: تعميم صورة مطلوب بجرم نشل، هل تعرفون عنه شيئاً؟ Man killed during riot in Ali Curung, as cars set on fire and up to 100 reported fighting Labor wants ATO to appeal to taxpayers' sense of fairness Murdered mother's last relationship, bag found at crime scene, of interest to police Ballarat police officer found guilty of assault against woman in custody, jury discharged over other counts Strawberry needle contamination: Accused woman motivated by spite, court hears Strawberry needle contamination scare: Queensland woman charged after months-long investigation Police fatally shoot man under guard at Ipswich Hospital Woman dies after minivan carrying six people rolls Motorbiker crashes, allegedly enters houses 'armed' with screwdriver Sharp objects found in South Australian strawberries Runaway, driverless train failed to respond to emergency stop attempt, interim report finds Police urge public to avoid Melbourne CBD after car fire in Bourke St Luke Foley resigns as NSW Labor Leader following ABC journalist's statement NSW Government commits $712 million to public school fund, signs up to federal deal Queensland tourism operators in uncharted waters after third Cid Harbour shark attack RBA shrugs off falling house prices, weak inflation to keep rates on hold at 1.5pc All-hours shopping to reinvigorate Sydney nightlife economy Petrol prices surge 20pc this year, but analysts say not much can be done about it Stamp duty overhaul in NSW is little comfort to current homebuyers, Opposition says Police officer seriously injured in Belmont dog attack while trying to arrest man with knife Man charged with murder after altercation in Brisbane's south 'Earn and churn' GP consultations targeted Mother and son dead, three other family members fighting for life after head-on crash at Brimin, Victoria Canberra's bushfire remains out of control, but there's no immediate danger Victorian man Pande Veleski jailed for 20 years for killing French backpacker Sydney murderer for pushing wife into burning bedroom and blocking her escape ACT bushfire moving fast towards south Canberra after starting from burnt-out car