The superannuation revolution

However, a number of wise decisions can lessen the impact of these changes.

A good one will be to decide to work beyond the traditional retirement age of 65. Ten years of extra work, even part time, will enormously increase the size of your Super Fund.

If the Superannuation Guarantee is immediately increased to 15%, the impact on retirement incomes would be very significant.

Perhaps the most important attitude change that we need to accept is that Superannuation is not the only way to save for old age. Prior to 1990, we all simply saved by buying shares, bonds, term deposits, property etc with no taxation benefits being available to us. We must try doing this again instead of illegally using superannuation as a tax haven.

All of the above will be pointless, if the basic age pension is inadequate. The Federal Government must appoint an independent Pensions Commission to objectively determine what the size of the Age Pension should be. Up until now, its size has always been determined by political decisions of very doubtful validity. Quite simply, this is not good enough.

We are all aware that we live in a world of rapid and unending change. We all have no option but to adapt to those changes while making sure that we work towards attaining a lifestyle that the nation can afford.

We are living in an era of responsible citizenship.