'this is not my calculation, but treasury modelling, how is possible after 80 years of supper still 75 % will rely on age pension ?
cafa lets put all blame on 1%, instead to look on majority which is not able to save anything, retiring too early and spend everything too soon.'
Oh dear. I'm not putting the blame on anyone! I have done very well out of the tax breaks, and am fully self funded retired, and likely to never go on the pension. I'm very gratefull for all the tax consessions (I'll not use the word gift as it brings out emotive biases).
I'm probbaly in the 1%, or at least in the 5% that have had the most benefit from the tax system.
For those that are not able to save anything then the tax system has been of zero beenfit to them, and in fact that are probbaly worse off as other aspects of what is spent from general taxation are reduced to fund the benefit that I and others have received.
Retire too early? That may be the case for some, and for others who find themselves at close to 60 and being unemployed it really is a struggle to get back into the workforce. I guess working at Bunnings or Macca's may be an option.
For those that spend everything to soon, then they would have received the tax consessions and then end up on the age pension. That will allways be a potential issue unless the Super system enforces annuity at retirement, and they suck IMO. However in these cases the tax payer has effectively funded a very nice life style for a few years, and the funds the age pension. Can this be right for the remaining tax payers?
The states pension systems of most of the world are broken, with huge underfunding, and at some point state pensions will be less and less as the reducing number of taxpayers will one incapable, or unwilling to support them. The US system is technically bunkrupt and only huge federal debt keeps it going. By 2025 it will, IMO, become unbearable. The EU nations and Japan are in a similar situation with declining birth rates and an aging population.
The point is this - tax consessions are what they are, consessions. Any tax consessions has a cause and effect, be it super, negative hearing, CGT, work deductions etc.
None of us what to pay more tax than we have to, and we all want the benefit of the tax system - roads, education, medical, defence, etc etc etc.
Super tax consessions are for those who can take maximum advantage of the situation, a very valuable consession. And as you say the majority will lend up on the age pension in any case at some point in the future.
I make no comment about the tax system and super being right or wrong, but it should bee seen for what it is and we should avoid the personal biases in debating the merits of otherwise.
