The biggest headline grabber from the conference was the launch of IFSA’s Retirement Incomes and Long Term Savings (RILTS) policy aimed at overcoming a massive looming retirement savings gap.
This gap, quantified by Rice Walker Actuaries, is estimated to be around $600 billion within the next 40 years. It represents the difference between the retirement people expect to have, and the retirement that current compulsory and voluntary super contributions, combined with the age pension, will eventually produce. It is also bigger than the $507.7 billion Australians had in total super assets by the end of March.
IFSA CEO Richard Gilbert described this “blue print for change” as “possibly the most important document that IFSA has ever released”. He confirmed that IFSA was looking for allies to spread its message and would be lobbying the politicians for bi-partisan support.
Among IFSA’s recommendations are that:
n A benchmark be set by the community of what must be saved for an adequate retirement
n Co-contributions on voluntary contributions be extended to Australians earning up to average weekly earnings
n The work test for all voluntary contributions be removed
n The annual contribution limits (retain lifetime limits) be removed
n The superannuation tax system be simplified
n The superannuation contributions surcharge be removed progressively
n Taxes be moved away from contributions and earnings to benefits
n The distortions that hold back growth pensions be removed
n Legislation be clarified so that non-super savings can access retirement income products
n Superannuation, tax and age pension rules be better integrated
