Igr Report Highlights Need For Retirement Savings Debate
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Business - Finance Press Release1st February 2010, 08:01pm - Views: 904
 Media release Intergenerational report highlights need for adequacy debate Ground Floor, 215 Spring St¦ MELBOURNE ¦ VIC ¦ 3000 ¦ Telephone: 03 8677 3800¦ Fax: 03 8677 3801 © 2009 Australian Institute of Superannuation Trustees ABN 19 123 284 275 Monday February 2010 Report highlights need for debate on retirement savings Treasury projections that almost 80 per cent of Australians will still be reliant on some form of age pension in the year 2050 has highlighted the need for further debate on retirement income adequacy, the Australian Institute of Superannuation Trustees said today. The projections – contained in the Government’s Australia to 2050 Intergenerational Report released today - show by 2050 there will still be more people receiving the full pension (estimated at about 30 per cent of Australians) than those who fund their own retirement (estimated at about 20 per cent of Australians). “These figures may come as a surprise to the many young Australians now entering the workforce who assume that a working lifetime of compulsory super will guarantee them a pension-free retirement”, said AIST CEO Fiona Reynolds. “We need to revisit the adequacy debate and see whether the picture this report paints of retirement in 2050 is where most Australians want to be.” AIST has reiterated its call for government to consider lifting the SG to 12 per cent. “As the costs of an ageing population continuing to escalate, it becomes even more critical that we lift the SG to 12 % to ensure that as a nation we are less vulnerable to a blowout in age pension costs and that, as individuals, our retirement savings last longer, ” said Ms Reynolds. The report also shows that as Australia’s compulsory super system matures and retirement balances grow, there will be significantly less Australians reliant on the full Age pension – with proportionally more receiving a part Pension. “This confirms that our system is heading in the right direction,” said Ms Reynolds, “There will always be those requiring the safety net of a full Age Pension but we are concerned that the proportion of Australians receiving some form of the Age pension is not expected to change from current levels”. AIST is the peak industry body for the $450 billion not-for-profit super sector which includes industry, corporate and public sector funds covering the super interests of nearly 2/3 of the Australian workforce. Further enquires: AIST CEO Fiona Reynolds 0408 336 116 or Janet de Silva, AIST media 0425 745 095 Media release Intergenerational report highlights need for adequacy debate Ground Floor, 215 Spring St¦ MELBOURNE ¦ VIC ¦ 3000 ¦ Telephone: 03 8677 3800¦ Fax: 03 8677 3801 Email: info@aist.asn.au ¦ website: www.aist.asn.au © 2009 Australian Institute of Superannuation Trustees ABN 19 123 284 275 © 2009 Australian Institute of Superannuation Trustees ABN 19 123 284 275 DISCLAIMER This summary is intended as information only and should not be used in the place of legal or other advice. Australian Institute of Superannuation Trustees expressly disclaims all liability and responsibility to any person who relies in full, or in part, on any of the information contained in this summary, or is omitted from it. |
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