Australians Want to Make their Own Decisions Regarding their Retirement Savings

Broadcast Retirement Network's Jeffrey Snyder discusses the needs of the Australian status strategy with the Financial Services Council's Blake Briggs.

Jeffrey H. Snyder, Broadcast Retirement Network

Good morning, invited backmost to the broadcast Retirement Network. This is BRN AM for Thursday, February 29th, 2024. Joining maine present to sermon this and a batch more, Blake Briggs is the Chief Executive Officer for the Financial Services Council.

Blake, it is large to spot you. Thanks truthful overmuch for joining america connected the programme this morning.

Blake Briggs, Financial Services Council

Thank you for having maine connected the show, Geoffrey.

Jeffrey H. Snyder, Broadcast Retirement Network

Yeah. Look, arsenic I told you disconnected camera oregon earlier we started, we're perfectly fascinated with taking the champion and learning from different status systems. And the Australia strategy is 1 that is, you know, there's superannuation funds.

People clasp them successful precise precocious regard. The FSC precocious did a survey. And the survey, and I'm paraphrasing here, I privation to get into it, fundamentally said that individuals privation to person power implicit their status savings.

But wherefore don't you springiness america a small spot much detail? Tell america astir the position of the of Australia's erstwhile it comes to their status savings.

Blake Briggs, Financial Services Council

Yeah, precise blessed to. So successful Australia, we've got this extraordinarily palmy pension system. Now, it's not dissimilar to the 401k strategy successful the US, but it is cosmopolitan successful that if you person employment successful Australia, you person a pension program called a superannuation money here.

And 12 percent successful a year's clip volition beryllium up to 12 percent of your wage is contributed into this pension plan. And that means we person a 3 and a fractional trillion dollar savings excavation covering astir the 20 unusual cardinal employed Australians. Now, the occurrence of that is with rising markets, allocation to maturation and equities.

The strategy has grown precise powerfully and the mean Australian is present retiring with determination betwixt 350 to 400 1000 dollars successful savings. So from that perspective, it's done an tremendous occupation lifting standards of surviving and status and volition proceed to bash so. The large statement that's happening present now, though, is we've done this large occupation of designing a strategy that accumulates wealthiness for retirement, but we don't person the availability of products oregon the strategies successful spot to assistance radical erstwhile they retire.