Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Two wrongs make a right

By David Leyonhjelm - posted Monday, 10 February 2014


Already a common topic of discussion among the baby boomer generation is whether they have accumulated enough super or will be forced to rely on the pension in retirement. This is as it should be. The age pension, while modest, whittles away at the natural incentives to save for retirement. As such, it is important that only those who absolutely need it are eligible.

Using our system of compulsory savings accounts to achieve independence from taxpayers makes sense. But for those in their twenties and thirties, saving for a distant retirement is not a high priority. Using the funds to cover health expenses is far more relevant.

Of course this would require a phase-in period. Compulsory superannuation, which began in 1992, is only now starting to make a real difference. Funds managers should also compete more transparently on cost and performance than they do now, so account holders can choose a fund that suits them. Earnings in the savings accounts should ideally be tax free, and insurance should play a part for those who have not accumulated a high balance.

Advertisement

But if it is wrong to force people to save, it is also wrong that others pay for the health and retirement of those who refuse to save. Two wrongs can make a right.

  1. Pages:
  2. 1
  3. Page 2
  4. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

1 post so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

David Leyonhjelm is a former Senator for the Liberal Democrats.

Other articles by this Author

All articles by David Leyonhjelm

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of David Leyonhjelm
Article Tools
Comment 1 comment
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy