Super system disadvantages middle income earners: Mercer’s David Knox

Investment Magazine

Middle income earners are most disadvantaged by the superannuation system, Mercer’s senior partner David Knox highlighted during an interview in which he pitched the concept of a universal pension for all Australians regardless of how wealthy they are or how much they earn. In addition to making the system simpler a universal pension would also make it fairer, Knox said during an hour-long interview with David Bell, executive director of The Conexus Institute as part of the group’s ‘Big Ideas’ series. Watch the full interview here.

While explaining the advantages of the universal pensions concept, Knox highlighted how the current system falls short for middle income earning Australians. “Under the current system it’s the middle income earners who miss out. Low income earners get the age pension, high income earners get more of the tax concessions, middle Australia don’t get much at all so even under the current system there is an equity issue,” Knox noted.

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