Why do we have Superannuation in Australia?
Superannuation is a structure created and supported by the Australian Government to encourage individuals to accumulate wealth to provide a sufficient income stream in retirement.
By encouraging individuals to accumulate sufficient wealth and self fund reduces the level of reliance on an Australian Government Pension during retirement. The social security system in Australia is already under huge pressure and this pressure is expected to grow as the largest proportion of Australia’s population are currently entering retirement phase.
To assist in reducing the reliance on the Government Pension, the Australian Government has put in place policies to assist and encourage individuals to contribute, and accumulate sufficient wealth in superannuation.