The FPA has called on the government to address key policy changes to Australia’s retirement income system to ensure all retirees are adequately catered for.
In its submission to the federal government’s Tax Review Panel, key areas the association highlighted as needing change were tax rebates on superannuation contributions for low-income earners and a two-tiered age pension system.
“The FPA’s vision for the retirement income system is to ensure that Australians achieve a comfortable retirement based on a system that is fair, flexible, accessible and sustainable,” FPA chief executive Jo-Anne Bloch said.
“We would also encourage Australians to aspire to an adequate self-funded retirement, but with a pension system to support those who have been unable to achieve this.
“The delivery of an inclusive and effective retirement income system is a significant challenge facing Australia. Meeting this challenge requires fundamental consideration of the hurdles to be overcome and innovative thinking on how retirees’ needs can be met.”
The association’s submission also recommends policies to encourage a savings culture and reduce household debt.
“This cannot adequately be achieved without ensuring appropriate protection mechanisms are available to consumers,” Bloch said.
“Hence, the FPA has proposed changes to the insurance system to address the current protection gap in Australia.”
The FPA also proposes that the system be underpinned by initiatives to improve consumer financial literacy and capability.
“We propose improving consumer access to affordable advice to help Australians to prepare to fund their own retirement,” Bloch said.
