Superannuation.

Here in Australia we have a three tiered system of retirement Incomes. They are:

1. Compulsory Superannuation
2. Voluntary superannuation ( where you put in extra contributions)
3. The government pension

Paul Keating brought in compulsory superannuation many moons ago because of two reasons.

1. Superannuation was only available to public servants and some white collar employees usually on quite high incomes. It is important to note most people did not make any personal superannuation contributions at all.
2. The pension is adequate if you own your own home but only then.

Retirement incomes therefore was one of the clearest examples of market failure.

There was a timeline of the SGC gradually rising to 12% where it was thought most people could live as a self funded retiree. ( At present less than 20% of people in retirement are self funded retirees.)

I am always staggered that people who claim to want people to live free of government support in retirement support policies that lead to the opposite