Early access provisions essential: FSC
Provisions to increase the age at which Australians can access their superannuation are being supported by the Financial Service Council (FSC), but only if early access arrangements are included in legislation.
FSC chief executive, John Brogden, backed recommendations to the Murray Review to increase the preservation age to 65, however, he said that conditions should be made to enable people who are unfit to continue working beyond 60.
Brogden said the step was essential if Australians are to have enough money to support their retirements given the increasing life expectancy of the population and in the wake of the Federal Government's decision to push the pension age up to 70 by 2035.
"Our submissions to the Murray Review, recommends an increase in the preservation age to at least age 65 and that it should be linked to life expectancy," he said.
"However, this should be flexible for those who can't continue working due to ill health or who are in physically demanding jobs.
"This will increase private savings, improve living standards in retirement, boost Government tax receipts and reduce age pension payments.
"While the increase in the age pension access to 70 is an important and necessary step, Australia cannot sustain a ten year gap between when superannuation and the age pension can be accessed.
"There is no point in increasing the age pension age if people will simply exhaust their superannuation savings before qualifying for the age pension."
Recommended for you
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
