Retirement funding should be a Budget priority
Funding retirement for the ageing population is a national priority and should be addressed in the upcoming Federal Budget by way of reform, according to the Actuaries Institute.
In its pre-budget submission to the Federal Government, the institute has called for a number of tax and regulatory reforms to help baby boomers better prepare for retirement.
One of possible solutions could be facilitating the development of annuities, according to the Institute chief executive officer, Melinda Howes.
Howes said annuities were a type of investment which addressed two key risks that ageing Australia currently faces: longevity and the risk of loosing capital due to volatile market movements.
"Australians tend to take their superannuation balances as a lump sum on retirement - which puts pressure on the age pension because it makes it harder to manage retirement savings versus spending," Howes said.
"But new generation annuities can address key needs in retirement, enabling retirees to better manage their retirement savings and protect against longevity and market risks."
Howes had also called for a temporary national insurance pool for high flood-risk properties.
The Actuaries Institute believes further government intervention in the flood insurance market was necessary due to high-risk properties "becoming uninsurable".
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
