Why compulsory superannuation benefits the financial industry and the rich at the expense of everyone else
Published at The Monthly
Superannuation is mostly a con. It involves the funnelling of vast amounts of wealth from wage-earners to the financial sector, and continues the neoliberal project of fracturing and individualising our hopes and ambitions.
The primary beneficiaries of our super system are fund managers and other financial parasites. Second to them are the very wealthy who are best placed to make use of generous superannuation-related tax concessions to minimise their tax. This financial year alone we are expected to pay $17 billion in superannuation tax concessions to the wealthiest 10% of the population.
Meanwhile, stay-at-home parents and carers, who are overwhelmingly women, are short-changed because their work does not contribute to their standard of living in retirement. Women are currently retiring with average super balances close to half that of men. That alone should be enough to make us rethink the entire system.
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