RETIREMENT INCOME – GOVERNMENT POLICY – AUSTRALIA

Retired engineer calls Treasurer’s wealth idea crap

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Original article by Ben Potter
The Australian Financial Review – Page: 5 : 25-Sep-15

Older Australians own almost $A1bn worth of residential property assets. Treasurer Scott Morrison has proposed that they capitalise on this wealth by downsizing to a smaller home and using the proceeds to help finance their retirement. However, retired engineer Peter Walker argues that many retirees could not afford to buy a smaller home that is close to family and friends. Walker and his wife opted for a home equity loan rather than a reverse mortgage to provide them with a retirement income stream.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, HOMESAFE SOLUTIONS PTY LTD

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY

PM’s inaction makes super ‘vulnerable’

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Original article by Sally Patten, Sally Rose
The Australian Financial Review – Page: 1 & 6 : 3-Jun-15

Financial system inquiry chairman David Murray says changes to Australia’s superannuation regime will be necessary in the future. The Federal Government has indicated that super reform is not on its agenda, but Murray says that failure to pursue reforms will ultimately undermine confidence in the super system. The Australian Council of Social Service is among the organisations that have called for a review of the entire retirement incomes system.

CORPORATES
AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, COMMITTEE FOR SUSTAINABLE RETIREMENT INCOMES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, LIBERAL PARTY OF AUSTRALIA

‘Bring it on’: Labor will fight on super tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 6 : 20-May-15

Shadow treasurer Chris Bowen will address the National Press Club on 20 May 2015. His speech will advocate changes to the superannuation system, arguing that tax concessions for retirees are not sustainable. He will also stress that the Opposition is prepared to fight the next federal election on the issue of super. The Federal Government recently dropped plans for super reform, but National Seniors Australia believes that reforms should not have been restricted to the pension system.

CORPORATES
AUSTRALIAN LABOR PARTY, NATIONAL PRESS CLUB (AUSTRALIA), NATIONAL SENIORS AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. DEPT OF THE TREASURY

Retirement lump sum could end

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 25-Mar-15

The financial system inquiry’s recommendation that future retirees should not receive a superannuation lump sum payout may be implemented. The Department of the Treasury’s executive director John Lonsdale addressed the Australian Securities & Investment Commission’s annual conference on 24 March 2015. He raised the prospect of new rules that would require superannuants to finance their retirement via a default pension fund rather than a lump sum payout

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SUPERANNUATION CONSUMERS CENTRE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Morrison prefers housing carrot to pension stick

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Feb-15

The Australian Government has ruled out subjecting a retiree’s home to an assets test for eligibility for the aged pension. Social Services Minister Scott Morrison has instead proposed allowing retirees to downsize to a smaller home without having their pension affected by the proceeds from the sale. Morrison notes that retirees who opt to downsize their home are currently penalised financially

CORPORATES
AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, COUNCIL ON THE AGEING, NATIONAL SENIORS AUSTRALIA LIMITED

Retirees left to flounder after they leave work

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Original article by Karen Maley, Ruth Liew
The Australian Financial Review – Page: 6 : 16-Jul-14

The financial system inquiry has found that retirees are not given sufficient guidance by the superannuation sector. It is argued in the interim inquiry report that the sector does not offer sufficient risk management options to retirees in the draw-down phase. For instance, few income stream products with longevity risk cover are available in Australia. A new round of submissions on how to cope with an ageing population is sought by the inquiry

CORPORATES
FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, CHALLENGER FINANCE PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED