Superannuation

Press, 16 May 1989, Page 20

Superannuation

Sir,—Hopefully, the public are not gullible enough to be misled by such obvious “kiteflying” on the subject of national superannuation as that provided by Mr Boyd Klap, chief executive for the Life Offices Association. It appears that he expects the Government to subsidise insurance companies’ private superannuation schemes by reducing existing national superannuation payments by 50 per cent and transferring this money to subsidise a tax concession of more than S9OOM to those contributing to life offices' superannuation schemes, thereby increasing their profits substantially! Very nice for them but not for those already living at a subsistence level on national superannuation. Instead of the life offices expecting the taxpayer to enhance their

already inflated profits by such devious ploys, let them provide schemes for privately funded superannuation so attractive that they will be flooded by a plethora of clients happy to subscribe because of the obvious benefits provided by such innovations. Furthermore, let such private schemes possess a totally guaranteed, built-in, payment entitlement to avoid the plight of so many contributors to life insurance unit trusts that each lost thousands of dollars of their life savings, as I did in my endeavour to provide for my future through private funding.—Yours, etc.,

R. CHRISTIE. May 10, 1989.