The FPA has urged the federal government to introduce measures to encourage workforce participation in retirement as a way to address the nation’s ageing population challenge.
The advice association made the suggestion in its submission on the 2014/15 budget.
As part of the 31-page submission, it recommended the government provide incentives to encourage Australians to defer the age pension by allowing individuals who were still working to contribute to superannuation beyond the age of 75.
“Personal contributions to superannuation are generally not permitted for people aged 75 and over,” the FPA said in the submission dated 31 January.
“The FPA recommends that individuals who satisfy the work test should be able to contribute to super beyond the age of 75.
“This will further align and simplify superannuation rules, encourage contributions into superannuation and reduce the future reliance on the age pension.”
By Krystine Lumanta.
If you could benefit from advice on retirement planning or would ideally not like to need to work beyond 75 contact us