Government urged to tackle savings
The Howard Government has been urged to reconsider the state of retirement savings after being returned for a third term in office at the weekend’s election.
Well known financial planner and immediate past chairman of theFinancial Planning Association(FPA) Ray Griffin says the Government is likely to continue its neglect in terms of its responsibility to the nation by failing to address what he says is “the crisis in national savings”.
Griffin, a director of Tamworth based Gunther Doyle Griffin, says even though the returned Government has committed itself to match dollar for dollar superannuation payments for low income workers, the idea fell short because it only covered a small segment of the public.
“It is only the tip of the iceberg because it relates to contributions of up to $1000 a year for those earning less than $32,000 a year. There is a bigger crisis looming in this area,” Griffin says.
“The fact remains that neither side of politics has articulated a realistic long term plan for the increasing numbers of retiring Australians. This type of piecemeal approach to superannuation is simply a token gesture.”
Griffin says he applauds the Government’s action but hopes it is just the first step towards a legislative commitment to compelling Australians to provide for their own future financial needs.
His comments have also been echoed by theInvestment and Financial Services Association(IFSA) chief executive Lynn Ralph.
Ralph says the association reiterates its comments from before the election for a continuing examination of superannuation and the proposed changes as tabled by the Minister for Financial Service, Joe Hockey.
IFSA also says it supported government moves such as the staged reduction in the surcharge, co-contributions to lower income earners and the recognition of growth pension products as well as the commitment to put superannuation choice back on the Parliamentary agenda.
The FPA, before the election, also called for a review of retirement savings. Its members indicated in a survey that a review of the national retirement income system, including the superannuation, aged pension and health care systems, was needed to ensure a better integration of superannuation with the government social security system. Respondents also emphasised the need to educate the community about the benefits of saving.
AUTHOR
Jason Spits
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