The Financial Services Council has proposed several policy measures it says would improve retirement outcomes for Australians, including a call for a “champion” in government.
Addressing a Deloitte/FSC Leadership Series lunch, FSC chief executive John Brogden said a financial services minister should be of equal cabinet rank and importance as the minister for agriculture and the minister for resources.
“Government must substantially increase the paltry resources currently devoted to financial services and focus them on us as an industry for growth, rather than simply an industry for regulation,” he said. “If this means fewer resources are devoted to smaller and declining industries then so be it.”
In addition to reiterating calls for government to keep its hands off super as a potential honeypot to fix other funding gaps, Mr Brogden also said the concessional contributions caps should be raised to $35,000 for all Australians, irrespective of age or account balance.
Rather than a flat annual cap, Mr Brogden also called for a three-year averaging rule to be introduced so consumers can contribute a total of $105,000 over a three-year period.
To address the gender imbalance in super Mr Brogden suggested full superannuation entitlements should be paid to all women who take either government- or employer-sponsored parental leave.
And to address longevity risk, the government should “remove impediments to the development of new longevity products that enable retirees to most effectively manage their savings for the remainder of their lives,” he said.
The government also needs to take steps beyond the Future of Financial Advice (FOFA) reforms to improve access to advice. Mr Brogden said the industry would be prepared to co-fund an initiative with the government to develop a public education campaign to raise awareness about the importance of financial advice and the impact of FOFA.
He also said if the government is serious about improving access to advice, it would make financial advice tax deductible.
