National Seniors is seeking stronger legislative provisions to prevent the current practice of advisers switching clients into new, less suitable life insurance products.
Seniors say changes to Defined Benefit Schemes should be delayed for six months, instead of coming into force from 1 January 2016.
National Seniors chief executive Michael O’Neill has written to Social Services Minister Christian Porter, outlining the issues of concern and suggesting the changes start from 1 July next year.
A defined benefit superannuation scheme is one where the amount paid is defined in advance by a set formula rather than the value of investments.
Australia's consumer lobby for the over 50s, National Seniors Australia, has welcomed the Government’s response to the Financial Systems Inquiry.
Chief executive Michael O'Neill said that governments played an essential role in ensuring confidence in the financial system at all levels - from global markets to the nation’s boardrooms to the kitchen tables of everyday Australians.
“The endorsement of almost all of what the David Murray-led Inquiry recommended provides a foundation for that confidence,” O’Neill said.
The common ground found amongst usually disparate groups in Wednesday’s National Reform Summit was refreshing, says Australia’s over-50s lobby.
The Summit - which was driven by eight core business, union and community interest groups, including National Seniors, and brought together around 80 representatives from pre-eminent think tanks - reached consensus on the urgency of reform.
The National Seniors Social Survey conducted between 2012 and 2014 surveyed its members on their views about the financial aspects of their retirement. This report highlighted some of those previous findings, and included the results of the survey conducted in 2014.
The report found that the vast majority of seniors perceived that superannuation’s purpose was to provide a regular income for retirement.
Other highlights of the report include:
Pension changes announced by the Coalition will pass through the Senate next week with the support of the Greens.
The changes, which economists say will hit mid to low income retirees, represent the biggest savings measure of the 2015 federal budget ($2.4 billion).
National Seniors says the changes are poorly thought through, and should be rejected by the parliament to allow a comprehensive whole-of-system retirement income review that considers the interplay of all components including tax and superannuation, to occur first.
Older people interested in the latest research into planning for a successful retirement, healthy living and positive ageing are invited to the National Seniors Productive Ageing Centre’s free public forum on Tuesday, 23 June 2015.
The forum, from 10.30am to 3pm at the Swanston Hall at Melbourne Town Hall, will include speakers from Leadership Victoria, University of New South Wales, Justice Connect Seniors Law, the Department of Human Services, Municipal Association of Victoria and Melbourne School of Design from Melbourne University.
National Seniors is urging consumers to exercise caution while using the Financial Advisers Register, warning that crucial information about financial advisers’ background and experience is still missing from the system.
The Federal Government announced this week that the Financial Advisers Register would include advisers’ training, qualifications and professional association memberships.
But National Seniors chief executive Michael O’Neill is warning consumers to tread with caution.
The Federal Government’s changes to the pension assets test and taper rates will result in a mix of beneficiaries as well as older Australians who will be disadvantaged, says National Seniors.
Today Social Services Minister Scott Morrison announced a number of changes to the Age Pension which will be part of next week’s federal budget.
This week’s interest rate cut is another blow for older Australians who rely on term deposits for investing their often limited savings, National Seniors says.
The Reserve Bank of Australia on Tuesday slashed its cash rate to a record low of two per cent, the second in 2015 and the 10th consecutive reduction since November 2011.
National Seniors chief executive Michael O’Neill said the continuing run of interest rate falls was bad news for those on limited and often fixed incomes.