FSC backs Commission of Audit on super preservation

The Financial Services Council (FSC) has supported specific elements of the Commission of Audit's recommendations — those related to the superannuation preservation age and the age pension.

FSC chief executive John Brogden said his organisation had commended the Audit Commission's recommendations to tighten the link between superannuation and eligibility for the Age Pension, which entailed reducing the gap between the super preservation and the pension to five years.

Brogden said the FSC commended the recommendation because many Australians starting work today would live for more than a century — something which made leaving the super preservation age at 60 no longer viable.

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"The retirement savings of Australians are increased by $200 billion for every year the preservation age is increased," he said.

Brogden said it was critical that the increased life expectancy of Australians represented the driver for Age Pension and superannuation policy, so future generations of taxpayers were not burdened with the cost of earlier generations' retirement.

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