Treasurer Scott Morrison says Australians should not expect to rely on the Age Pension
Australians can forget about relying on the age pension when they retire, according to Federal Treasurer Scott Morrison.
Echoing his predecessor Joe Hockey’s pledge about the age of entitlement being over, in a speech on Friday Mr Morrison said the age pension should no longer be seen as an entitlement but “a welfare payment for those who do not have the ability to save enough to fund their own retirement”.
“Becoming a self-funded retiree, I think, is one of the most important objectives of any Australian … it means you have choices and control over your life and your care,” Mr Morrison said.
Under the current system nearly all Australians can claim at least a part age pension payment from the government when they retire, on top of their super savings.
Mr Morrison said the federal government intends to change the definition of superannuation in law next year, to better enshrine the idea a self-funded retirement was a “worthy prize”.
He also indicated super tax breaks for the very wealthy will also be reined in, a backflip on what was promised when Tony Abbott was prime minister.
“Super was never designed to be an open-ended vehicle for wealth creation,” Mr Morrison said.