Combine health and super: Bowden
Mercantile Mutual’s new funds management boss has urged federal government to consider tying health and aged care funding to superannuation.
Mercantile Mutual’s new funds management boss has urged federal government to consider tying health and aged care funding to superannuation.
Ross Bowden, who recently took over from the ING Canada-bound Paul Bed-brook, says health and aged care will be a greater social cost in the future than pen-sion payments.
"Everyone talked about the long-term cost to taxpayers of superannuation, and how it's going to rise to a certain percentage of GDP. The superannuation guarantee levy was designed to address that," Bowden says.
"But the greater cost to the future will be health and aged care. The current projec-tions indicate that the aged pension costs will rise to somewhere like 5 per cent of GDP in 50 years time.
"But the cost of health and aged care is predicted to rise to anywhere from 12 to 15 per cent of GDP."
Bowden says the government should consider the model used in Singapore where superannuation and healthcare payments are linked.
"You'd have part of your salary going into a health account to pay a health pre-mium or some other contribution to health costs. Any extra could be tipped into retirement savings."
Bowden also called for a review of superannuation in Australia, with a view to gradually lifting the maximum superannuation guarantee contribution from the present 9 per cent to 15 per cent.
"We believe there needs to be an emphasis put on long-term saving. If you want to give people in this country a decent retirement income at a time when they're living increasingly longer, then you're going to have to increase it to 15 per cent," he said.
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
