Fed: Research predicts fall in living standards from ageing

AAP General News (Australia)
04-22-2004
Fed: Research predicts fall in living standards from ageing

The superannuation industry says the ageing population will put a squeeze on living
standards and family budgets unless urgent action is taken to boost savings.

The Association of Superannuation Funds of Australia says the government's intergenerational
report fails to consider the financial impact of demographic change on household and state
government budgets.

New research suggests higher taxes, lower government spending, higher health costs
and low household savings will cut living standards by $130 billion by 2042.

The association's chief executive PHILIPPA SMITH says if Australians' poor savings
habits are allowed to collide with our so-called demographic destiny, the result will
be a train wreck.

ASFA says the size of the crisis could be limited by lifting superannuation savings
to 15 per cent of income, from nine per cent for the majority of workers who rely on employer
contributions.

AAP RTV kmh/swe/rp

KEYWORD: SUPER (CANBERRA)

2004 AAP Information Services Pty Limited (AAP) or its Licensors.