Look beyond compulsory superannuation: Paul Keating
Former Prime Minister and Treasurer, Paul Keating has called for Australia to pursue a sustainable post-retirement incomes regime beyond the current compulsory superannuation system.
Addressing the opening plenary of the Association of Superannuation Funds of Australia national conference, Keating advocated the pursuit of policies entailing the use of deferred annuities to cover the needs of those living beyond 85 or, alternatively, an additional 3 per cent of wages being contributed to a Government-run insurance pool.
He said that while lifting the superannuation guarantee to 12 per cent was welcome, it was not going to be enough to meet Australia's longevity challenge.
The former prime minister acknowledged that the original superannuation system had simply not envisaged the longevity issue.
Keating was also critical of the Gillard Government's decision to cut concessional contributions and argued that it would not allow for the de-risking of the age pension.
He said that those aged over 50 should able to contribute as much as $100,000 if they want to.
Keating said the Government's desire to reduce pressure on the Budget was understandable but failed to take appropriate account of the out-lying years.
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.
