The government is seeking feedback on the following proposed objective:

The objective of superannuation is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.

The consultation paper also provides definitions for each of the terms outlined in the objective.

Preserve savings is defined as restricting access to superannuation savings for a person’s retirement only.

Deliver income refers to providing income in retirement while dignified denotes the importance of financial security and wellbeing in retirement.

Government support under the objective is intended to “encapsulate and highlight the superannuation system’s interaction with the Age Pension pillar as well as other government support”.

Equitable and sustainable signifies that the system should provide similar outcomes for people in similar circumstances and government support should be target to those in need.

“Superannuation also needs to fit with the broader fiscal strategy,” the paper explained.

The consultation paper has also proposed two alternative objectives:

• The objective of superannuation is to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.
• The objective of superannuation is to support savings to deliver income for a dignified retirement, in an equitable and sustainable way.

The consultation paper stated that legislating the objective of superannuation will provide stability and confidence to policy makers, regulators, industry, and the community, that changes to superannuation policy will be aligned with the purpose of the superannuation system.

“It will also ensure members and funds have a shared understanding of the purpose of superannuation throughout both the accumulation and retirement phases,” it said.

The government is seeking stakeholder feedback on the framing of the draft objective of superannuation, including the benefits of the objective and its practical application. The consultation ends 31 March.