IFSA urges measured change to retirement incomes
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There is no reason to radically alter the Australian retirement savings system despite the downturn in financial markets, according to the Investment and Financial Services Association's (IFSA's) submission to the Henry Tax Review.
The IFSA submission, details of which were released this week, urged measures that would build and enhance the existing retirement savings regime as well as the implementation of soft compulsion arrangements to lift superannuation contributions.
IFSA executive director Richard Gilbert said radical change to the Australian retirement savings system was not necessary, with IFSA having produced a 10-point plan that aimed to build on and enhance the existing retirement savings framework.
Among that 10-point plan is the suggestion that more sophisticated analysis is needed of superannuation adequacy and the possibility of rebating superannuation contributions to low-income earners.
As well, it suggests that the Government increase the superannuation guarantee to 12 per cent when economic circumstances permit and that, in the absence of an increase in the superannuation guarantee, soft compulsion be used.
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