Keating calls for further super measures

29 November 2012
| By Mike |
image
image
expand image

The 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 be able to contribute as much as $100,000 if they wanted 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.

 
Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

2 days 18 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

2 days 18 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

2 days 19 hours ago