FSC renews argument for lifting preservation age

The Financial Services Council (FSC) wants the superannuation preservation age lifted to 65 by 2035 to match the Government's intended increase in the retirement age to 70.

Amid some strong criticism and negative poll reaction to the Government's move to lift the pension access age to 70 in 2035, FSC chief executive, John Brogden, has said the preservation age for accessing superannuation must be increased to at least 65 years if Australians are to have a comfortable retirement.

"The average superannuation fund balance at retirement is currently $75,457," he said. "That is not enough to sustain a comfortable living standard."

Brogden said the FSC believed Australians needed to aim towards a superannuation balance of $424,000 when they retired — something which would provide an annual income of $32,500 per year which is the amount required to live comfortably.

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"Many Australians starting work today will live for more than one century. It is critical that the increased life expectancy of Australians is the driver for Age Pension and superannuation policy, so future generations of taxpayers are not burdened with the cost of an ageing population," he said.

Brogden said that for this reason, the age at which superannuation could be accessed had to be increased to at least 65 years by 2035.

"This will reduce the gap between when superannuation and the Age Pension can be accessed to five years," he said.

Brogden claimed that each additional year spent in the workforce added $200 million in retirement savings for Australians.