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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
Australian.
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