Speaking at the Actuaries Institute Financial Services Forum in Sydney this week, Mr Brogden said a natural partnership will form between superannuation and the banking sector as the Murray Inquiry looks to the financial system to fund the Australian economy.
“We will have so much money available [in superannuation] that we look for very long term, very predictable outcomes in Australia with good strong predictable returns,” Mr Brogden said.
“You can’t go past home mortgages in Australia when you are looking for that,” he said, adding that Australians have a cultural connection to housing second only to the UK in terms of percentage of home ownership.
“Australians would eat baked beans before they default on their mortgage,” Mr Brogden said.
“We all know it; you will get down to your last penny and you will make every effort to repay your mortgage.”