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Australians need government help to spend super, argues the Grattan Institute - ABC News (www.abc.net.au)

submitted 3 months ago by [email protected] to c/[email protected]

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Grattan's modelling shows that Australians who draw down their super at the minimum rate when they retire will leave the equivalent of 65 per cent of their original super balance unspent by the age of 92.

Tax payer subsidy for inheritance?

that many retirees are net savers, with their super balances growing for decades after they retire, for fear of outliving their savings.

"This is not how it was meant to be.

Isn't it ? How a something works is surely representative of how it was designed.

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[–] [email protected] 1 points 3 months ago* (last edited 3 months ago)

They better not spend it and have a heap saved in case they need to go into an aged care facility.

Either you pay a big daily fee, or you need to put in a large lump sum, and still pay $62/day minimum.

The average super balance over 75 is $314,000. And he is talking about 65% of that, which is $204,000. Is leaving that to your heirs really that much of a problem? It won't cover even the cheapest of aged care facilities in NSW.

Of course, the real wealthy people can simply afford private nurses and servants to be cared for in their own home, so it's not an issue....