AMP weighs in to longevity risk debate
AMP’s chief executive Craig Meller has argued the superannuation guarantee alone is not enough to sustain the retirements of Australians.
In a speech made to the Committee for Economic Development of Australia earlier this week, Mr Meller said there is a “critical need to encourage [Australian] citizens to save more”.
“The simple reality is that saving just 9.5 per cent of your earnings is not enough,” he said.
Mr Meller said the superannuation guarantee was first introduced in 1992 with the intention of setting more Australians up to fund their own retirements.
“It was – and still is – the second pillar between the age pension and voluntary savings for retirement,” he said.
While the superannuation guarantee has generated a significant investment pool, “no one can create a product that makes up for a person not saving enough”, he added.
Mr Meller also noted in his address that AMP holds a strong belief that the “regulatory changes introduced in the last three years across prudential regulation, across consumer protection regulation and across superannuation regulation will work”.
He argued, however, that the changes need time to be implemented and time for their effectiveness to be assessed.
“We are strong supporters of this government’s approach to letting these changes bed down before embarking on any further disruption to the financial services sector,” he said.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.