Speaking to journalists in Hobart, Assistant Treasurer Kelly O’Dwyer was asked whether she was worried that retirees are passing their superannuation savings onto their children rather than spending it themselves.
The question came after an upcoming study by the CSIRO indicated that most Australians die with large superannuation balances, having lived an overly frugal retirement.
CSIRO behavioural economist Andrew Reeson told The Guardian that there has been a popular concern that Australian retirees spend their money too quickly, while the opposite is true.
“Most Australians actually spend during retirement very conservatively, withdrawing their super at or very close to the minimum requirement,” Mr Reeson said.
Responding to questions about the research, Ms O’Dwyer said it is “up to the individual as to how they spend their retirement income”.
“The government’s not there to dictate to them how they should spend their money, or how much money they should have,” Ms O’Dwyer said.
“In fact we want to give them the choice; we want to make sure that they are making the choice about their retirement income and our changes, to transparency [and] to governance that ensure there is choice in superannuation funds, will mean just that.”
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