Hey Labour, give up our retirement savings

The Albanian government wants channel Australia’s retirement savings in social and affordable housing to address the chronic housing shortage in the country:

The federal government is seeking to incentivize the superannuation industry to invest in social and affordable housing as part of its plan to tackle a growing supply shortage.

Deputy Treasurer and Minister of Financial Services Stephen Jones hosted a roundtable this week with leading industry group Association of Superannuation Funds of Australia (ASFA) in a bid to secure their investment…

“There are many areas where the government can partner with the super funds to advance the national interest,” Jones said…

“Boosting our economy with Australian workers’ own savings is smart.

“Smart governments are looking at all available options to solve these [economic] problems. Engaging with our super funds is one way of working together to achieve this.

Labor was criticized last month for tapping into pension funds to increase its exposure to “nation-building” projects.

Former senior Treasury official Mike Callaghan has argued that super funds should only invest in such projects if it is in the best financial interests of their members.

Along the same lines, Shadow Treasurer Angus Taylor and Brendan Coates of the Grattan Institute have argued that the primary purpose of the superannuation is to provide for retired Australians. Therefore, they should only invest in assets that will provide a good return.

The main problem is that the main purpose of retirement has not yet been defined, although mandatory retirement has existed since 1992.

The former coalition government introduced a bill which attempted to define the main purpose of the superannuation as follows:

“Providing retirement income to replace or supplement the old age pension”.

Unfortunately, this bill was never passed.

As a result, Australia’s mandatory pension system has been left to the whims of politicians who seek to use it as a tool to suit their own political agendas.

Australia’s retirement savings should be managed primarily to maximize risk-adjusted returns and should be available if and when members require it.

The Albanian government must recognize that Australia’s retirement savings belong to its members. It’s their money, not Labour’s bogus money.

Unconventional economist
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