Continuous and ongoing rule changes to Superannuation stopped me contributing extra to my Superannuation Fund many years ago.
You once could access our Super at anytime if you started an annuity/pension from it. That was stopped
If you were leaving the country permanently you could take your Superannuation money with you. Now it must remain in Australia until you reach preservation age.
Transition to retirement was available from the age of 55 now it is 60.
Regardless of how much you have in your Superannuation account, if you were born after July 1st 1964 you can not retire early using your Superannuation until you reach your preservation age.
If you have $2million, doesn't matter you have to wait yet it is supposedly your money and meant for retirement.
Tax Free status on pensions/annuities on balances up to $1.6M I think is reasonable, the tax free status is available to everyone.
Capping it stops a free for all from the really wealthy to take advantage of.
My fear with Superannuation is it is becoming a bit of a ponzi scheme and I say this because i believe we will reach a point there will be more coming out than going in.
An ageing population and we are living longer coupled with casualisation and part time low paid gig economy/service jobs replacing the higher paid manufacturing jobs of the past is going to be a problem.
Raising the preservation age again (making us wait longer to access our money) and limiting lump sum withdrawals and forcing us to take annuities or pensions from our Superannuation instead are coming.
If I was to have a guess when this will occur, the last of the Baby Boomers are about 55, they will most likely be exempt from any changes Gen X and younger are going to cop the changes so around a 5 year time frame I'm guessing when we will see changes.
Possibly earlier with exemptions for those born before XX/XX/XXXX date.
Further to my reasoning we will see limits on lump sum withdrawals and mandatory pensions/annuities is the funds have large amounts tied up in assets not easily disposed of so as we age and take more and more from our accounts there will be liquidity problems.
In my opinion the tax advantages of Superannuation are outweighed by the fact that your money is trapped and subject to legislative changes so I'd not put any more than the Super Guarantee amount in and invest any extra monies outside Super or pay down your mortgage faster.
