Boomers calling for handouts to fund handouts to their kids
Calls for a universal pension have increased – now led by baby boomers who have had to help their millennial kids cope with the economic hit of coronavirus crisis.
Boomers are accessing their super to help younger Australians who are more likely to work in the hospitality industry, more likely to be casual workers and less likely to have savings or assets of their own, says 7news.com. Young casual workers may also struggle to access JobKeeper payments, as they are only eligible if they have been with their employer for 12 months or more.
Millennials are the number one group to take up early access to their super savings.
As of 11 May, more than half of the almost 1.4 million people who have accessed their super early were under 35, according to new Treasury figures.
Early super withdrawals meant young people would also face long term financial impacts.
“A 30 year old who accesses $20,000 from super now could lose about $100,000 when they hit retirement, and a 40-year-old could lose more than $63,000,” said Labor shadow assistant treasurer Stephen Jones.
“Superannuation is supposed to be our system of preparing us for retirement, ensuring that we relieve the burden on future taxpayers to save for retirement.”
Do you think a universal pension is a fair way to ensure Australians live with dignity in retirement?