Industry commentators have come out broadly in support of the discussion paper outlining the formal objective of Australia's superannuation system released yesterday.
Financial Services Council chief executive Sally Loane said the move to formalise the objective of the super system "would strengthen confidence in stable, long-term settings for what is our only truly inter-generational public policy."
She added, "Consumers need confidence that superannuation savings accumulated during their working lives will provide them with appropriate living standards in retirement. Enshrining the objective of superannuation in law is a very positive step for building and maintaining confidence in the system."
SMSF Association managing director Andrea Slattery said she had been a "strong advocate of this important policy initiative, having argued its importance to the FSI and then endorsing the FSI's recommendation to enshrine the primary objective, with a focus on the provision of retirement income as the quintessential focus of super.
"It's been our strongly held position that having a universally agreed primary objective is essential to bring stability to superannuation policy and help take it out of the budgetary cycle where it is at the mercy of the government of the day's fiscal demands."
Industry Super Australia also welcomed the news, with chief executive David Whiteley adding, "Hopefully, it will also help to liberate superannuation policy from the constant unhelpful political tinkering that comes with the Budget and election cycles. This will help build public confidence in the system."
Challenger chief executive Brian Benari concluded that: "The ageing of Australia's population is one of the biggest social and economic issues of our time. Making clear the purpose of super provides government and industry the framework to build policy responses and innovation opportunities that tackle the nation's great retirement challenge.
"This is an important step forward for the sustainability of the superannuation industry and will help make a meaningful difference to Australia's retirees."