Superannuation has failed in its original goal: helping Australians to achieve financial independence in retirement. Many Australians still rely heavily on the means-tested age-pension because they don’t have enough money to comfortably retire.
Superannuation may increase overall savings, but it also reduces the diversity of savings vehicles. The best example is housing: many Australians take longer to save for a deposit on a home and as result are still paying off their mortgage or renting when they want to retire. Because people don’t have options many end up worse off in retirement than they would otherwise.