The Federal Government's response to the Financial System Inquiry has arrived. Although the detail to come will be critical in defining policy and requirements, we now have a clearer direction for the future of Australia’s retirement savings system and what super funds and employers need to do.
October 2015, Financial System Inquiry Report
Mercer's summary of implications for Australia's retirement saving system. This report outlines the Government's response to the FSI's recommendations that directly impact the superannuation and financial advice industry. We have also provided our commentary on the Governments response and what it means for Australia's retirement savings system.
April 2015, Mercers Submission To Treasury
The Financial System Inquiry handed down 44 key recommendations on 7 December last year. Over the past few months Mercer has considered these recommendations and was pleased to submit our response to Treasury at the end of March.
While Mercer supports a majority of the recommendations related to superannuation outlined in the FSI report and its aim of ‘Lifting the value of the superannuation system and retirement outcomes’, our response addresses challenges we see in three key areas:
- Creating clear objectives for the superannuation system and understanding how to deliver them.
- Improving efficiency, facilitating innovation and creating certainty.
- Promoting income streams as the normal benefit for most Australian retirees.
Mercer has always advocated for a superannuation system that provides certainty, efficiency and innovative solutions so Australians can confidently generate sufficient wealth whilst working, to give them financial security when they finish working.
Over the coming weeks we will engage with Treasury on our response to the FSI recommendations as well as prepare a response to the recently released Tax Discussion Paper in support of the same objectives.
"Seek broad political agreement for, and enshrine in legislation, the objectives of the superannuation system...” FSI Final Report
We’ve summarised the FSI’s key recommendations related to our retirement savings system and mapped them against many of the recommendations we made to the FSI.
Retirement Income Framework Paper
The release of the report from the Financial System Inquiry (FSI), with its emphasis on retirement incomes, is set to intensify the industry’s focus on how best to tackle the retirement conundrum.
Mercer has developed a framework for this complex problem.