Early access provisions essential: FSC

age pension retirement FSC federal government chief executive

26 May 2014
| By Staff |
image
image
expand image

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."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

1 month 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 months 1 week ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

6 days 4 hours ago

Lonsec has appointed a new chief executive for its research and ratings division as Mike Wright takes up a new role in light of the acquisition of Evidentia Group by Lons...

1 month ago

The Financial Services and Credit Panel has cancelled the registration of an NSW adviser for two years as it felt he displayed a ‘level of incompetence’ in providing advi...

1 month ago

TOP PERFORMING FUNDS