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The issue of
Retirement Funding
How will Australians fund their
retirement
With the introduction of the Superannuation
Guarantee Contributions (SGC) in 1992, the Government’s stated aim
was to move away from an Old Aged Pension and towards a self funded
retirement.
However, research indicates that at current levels,
the SGC will in no way provide Australians with an acceptable
income stream in retirement.
This fact, coupled with a trend towards increased
longevity, a dramatic rise in the number of retirees during the
next two decades, the many complicated amendments to superannuation
legislation and together with the four levels of tax which is
applied to one’s superannuation, has clearly signalled the need for
Australians to look elsewhere for their long term security.
Pursuing the alternatives can prove a time
consuming and confusing exercise for the average Australian and
research indicates that many people have grown disheartened by the
process. Research conducted in the past has revealed that a great
percentage of Australians felt apathetic about their future needs
and that most were taking little or no action towards funding their
retirement.
We believe this attitude is the symptom of an
information gap, and that there is a need to simplify the concept
of supplementing the personal retirement planning of the average
Austral
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