It is important that the confidence of Australians in the super system is reinforced in order to help tackle looming longevity risk, according to minister for financial services and superannuation Bill Shorten.
Speaking at the Conference of Major Superannuation Funds (CMSF) in Brisbane, Mr Shorten lauded the work of previous Labor governments in introducing and increasing compulsory super requirements, but cautioned that there are demographic challenges being posed.
By 2050 there will be 8.1 million Australians over the age of 65 and the number of working Australians compared to retired Australians will drop from 50 employed Australians for every 10 retired Australians to just 27, he said. In just four years, 20 per cent of Australia's population will be over 65, he added.
"That's why it's so important for us to make good decisions now, so our system remains strong, stable and settled. We need to continue to reinforce the confidence of Australians in superannuation," he said.
Super was never designed as a welfare tool for low income earners, which is the preserve of the aged pension, he said.
"We want a system which rewards a lifetime of hard work, and ideally ensures that Australian workers have something approaching 70 per cent replacement rate of their working income," he said.
The task of designing a sustainable super system requires long-term thinking, he continued.
"As a government, we recognise the need to provide superannuation policy certainty," he said.
Superannuation represents a charter with working Australians that says "we will help you save for your retirement through mandated employer contributions and tax concessionality", he said.
Labor's superannuation policy will continue to be guided by a vision that community confidence in the superannuation system is important and that Australians want the process of superannuation policy-making to be de-politicised, he said.
