Retirement funding should be a Budget priority
Funding retirement for the ageing population is a national priority and should be addressed in the upcoming Federal Budget by way of reform, according to the Actuaries Institute.
In its pre-budget submission to the Federal Government, the institute has called for a number of tax and regulatory reforms to help baby boomers better prepare for retirement.
One of possible solutions could be facilitating the development of annuities, according to the Institute chief executive officer, Melinda Howes.
Howes said annuities were a type of investment which addressed two key risks that ageing Australia currently faces: longevity and the risk of loosing capital due to volatile market movements.
"Australians tend to take their superannuation balances as a lump sum on retirement - which puts pressure on the age pension because it makes it harder to manage retirement savings versus spending," Howes said.
"But new generation annuities can address key needs in retirement, enabling retirees to better manage their retirement savings and protect against longevity and market risks."
Howes had also called for a temporary national insurance pool for high flood-risk properties.
The Actuaries Institute believes further government intervention in the flood insurance market was necessary due to high-risk properties "becoming uninsurable".
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