Super Blooper? Time to halt the superannuation juggernaut?

Hanegbi, Rami and Bagaric, Mirko 2004, Super Blooper? Time to halt the superannuation juggernaut?, Australian business law review, vol. 32, no. 5, pp. 345-361.

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Title Super Blooper? Time to halt the superannuation juggernaut?
Author(s) Hanegbi, Rami
Bagaric, Mirko
Journal name Australian business law review
Volume number 32
Issue number 5
Start page 345
End page 361
Publisher Law Book Co.
Place of publication Sydney, N.S.W.
Publication date 2004-10
ISSN 0310-1053
Summary The superannuation industry has increased almost exponentially in Australia over the past decade. The main reason for this is because government  regulation compels employers to pay a fixed portion of employees’ salary  towards superannuation. In this article we suggest that the unremitting  government policy of coercing money towards superannuation is flawed. Superannuation is wrong at two levels. First, on an economic analysis, the evidence does not suggest that (i) individuals who invest in superannuation are necessarily better off than those who apply their income elsewhere; and (ii) there is no evidence that absent a coercive superannuation scheme the government will be unable to sustain people into their old age. Second, at the human and societal level, studies of human well-being show that coercing people to make spending decisions is inimical to human happiness. People flourish best when they are in control of their activities, including their finances. Left to their own devices, many people will not save for a rainy day; however, on balance it is probably better off to be a bit poorer in retirement than to have been deprived of the opportunity to spend 9% of one’s income over the period of one’s working life – when one’s needs are the greatest. Compulsory superannuation should be abolished. Money currently paid as a compulsory superannuation contribution should instead be paid to the employee as a salary.
Language eng
Field of Research 180199 Law not elsewhere classified
HERDC Research category C1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30002663

Document type: Journal Article
Collection: School of Law
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