Plug the $1 trillion savings shortfall: FSCBY BEN COLLINS | TUESDAY, 4 SEP 2012 11:15AMNew research has prompted the Financial Services Council (FSC) to call for longer working lives, to plug a massive retirement savings hole caused by people outliving life expectancies. |
Editor's Choice
Janus Henderson acquires NBK Wealth, Tabula Investment Management
Janus Henderson has acquired the wealth management arm of the National Bank of Kuwait, NBK Wealth, as well as European ETF provider, Tabula Investment Management.
ART names advice and education leads
Australian Retirement Trust (ART) has revamped its advice, guidance and education team and created two new leadership roles.
Men, women in same occupation drive pay gap
A whopping 80% of the gender pay gap can be attributed to women being paid less than men within the same occupation, a new economic analysis shows.
Macquarie Group profits falls 32% to $3.52bn
Macquarie Group has reported a net profit of $3.52 billion for the year ending 31 March 2024, a 32% decrease from the previous year.
Products
Featured Profile
Robert De Dominicis
CHIEF EXECUTIVE OFFICER
GBST HOLDINGS LIMITED
GBST HOLDINGS LIMITED
It was during a family sojourn to the seaside town of Pescara, Italy, Rob DeDominicis first laid eyes on what would become the harbinger of his future. Andrew McKean writes.
The life expectancies quoted here understate the problem. We should be looking at residual life expectancy at age 65 instead of life expectancy at birth. For those aged 65, men can expect on average to live to 83.9 years and women 86.8 years.
Can anyone explain to my the thinking behind the decision to stop people contributing to superannuation after age 75?
I am referring to undeducted personal contributions.
Why not allow people who wish to, and are able to make contributions after age 75 to do so. Put a total limit on the balance attainable.
A possible balance of $1 Million and perhaps do not make the contributions tax deductable.
There are people who have suffered a set back and are at a late age able to recover from that set back. Perhaps they have a business or a property to sell. Why not allow a CGT Excempt contribution?
Why have a cut off date at all?
Please explain.
The IMF report suggests that a solution may lie in a much more dramatic increase in the formal age of access to the Age Pension. Given that people on average live at least ten years longer from age 65 than they did 100 years ago (when the access age was set) it defies logic that we only incrementally are increasing this age to 67.
There are many perspectives on this issue to be explored and debated. It's good to see private enterprise taking the lead as Governments don't seem to have the resolve to tackle these really hard questions and seek genuinely strategic solutions.
Problem solved.
Now all they have to do is work out how to balance the budget the way the rest of the community does, by matching expenditure in the current period with income actually earned in the current period ( instead of taxing future wealth as the superannuation taxation regime does.)
Maybe we would all have to stop living outside our means.