The Financial Services Council (FSC) welcomes the Federal Government prioritising public consultation on a proposed definition of the objective for the superannuation system.
CEO of the FSC Blake Briggs said: “The FSC supports the Government’s commitment to legislate an objective for the superannuation system as a priority and recognises the final objective must reflect the expectations and aspirations of everyday Australians.
“We welcome the Government’s efforts to build a consensus in what has historically been a contested area.
“The Government’s proposed wording heads in the right direction. We know from consumer research conducted for the FSC that Australians want a simple definition that speaks to their aspirations and has a singular focus on their retirement.”
FSC focus group research conducted across metropolitan and regional areas for both younger and older age groups found that when asked about a preferred objective, all groups preferred wording that focused on helping them achieve a dignified standard of living in retirement.
“The next step will be examining the detail of the proposal to ensure it sets the right parameters to prevent policy tinkering that could undermine confidence in the superannuation system for the 16 million Australians who are doing the right thing by saving for their own retirement.
“An objective of superannuation will help drive the focus of policy reform to address systemic issues, such as including superannuation contributions on Government paid parental leave to help close the gender gap where women retire with 18 per cent less superannuation than men.”
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About the Financial Services Council The Financial Services Council (FSC) has over 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.