A coalition of 14 financial services associations and companies is trying to convince the Federal Government to devise a plan to fix the $600 billion shortfall in Australians’ superannuation. But the Government is showing no signs of interest.

The associations include the Investment and Financial Services Association (IFSA), the Financial Planning Association, the Australian Bankers’ Association and the Australian Council of Trade Unions. They argue the Government needs to act now because huge numbers of baby boomers will be left financially unprepared when they retire in the next 10-15 years.

The coalition’s main lobbying points include:

• Abolishing the $3 billion a year 15% tax on super contributions;
• Giving retirees up to the age of 70 the choice of not drawing from their pensions;
• Setting up a retirement income goal of 65% of income for all Australians;
• Making the $100 co-contribution initiative available to people earning up to $60,000 a year instead of the present limit of $27,500 a year.

IFSA CEO Richard Gilbert said it’s abundantly clear Australians value superannuation as their preferred savings vehicle and that people will save when given enough encouragement. “IFSA believes it is important that any changes to superannuation policy take place in an open market where consumers have free and unfettered choice to access the full range of super products on offer.”

David Knox of PricewaterhouseCoopers – the independent chairman of the group – says current Government policies are inadequate and time is running out. “The organisations which have put their names to this document believe it is critical that strategies and incentives to provide for the financially secure retirement of average Australians are established now, and not left for future generations.”

But Assistant Treasurer Senator Helen Coonan says the coalition’s recommendations are a “wish list” which makes the coalition members “vulnerable to charges of self-interest”.

“The calls from industry would be a lot more convincing if they were accompanied by some action from the super industry itself, to relieve the impost that super fees and charges have on the retirement savings of Australian workers,” she said.