INTHEBLACK November 2021 - Magazine - Page 9
access to financial advice. More efficient ways
of providing financial advice will need to be found,
since a genuine shortage of financial advisers is looming.
Between now and then, competing policy needs
may position superannuation as something of a
“golden goose” – will more retirement savings be
opened up to pay for housing, for instance? The
importance of a policy statement such as a legislated
objective of superannuation will ensure that retirement
savings are actually kept for retirement.
climate change. Other risks include debt, the growing
demand for aged care and healthcare from an ageing
population, as well as the increased need for
technological improvement.
HOW DO WE IMPROVE?
HOW DO WE PLAN FOR THE NEXT PANDEMIC?
Many commentators have noted that during the
pandemic, the contingency planning across various
sectors in Australia was not as good as it could have
been, with lack of preparedness attributed by some
to a function of government.
The report notes that the country’s economic
performance during the COVID-19 pandemic is a
validation of the Australian economy’s resilience. The
report also highlights that COVID-19 has “not displaced”
pre-existing demographic, technological and other
trends in Australia’s long-term outlook.
Importantly, the financial sector will play an increasing
role in pricing climate risk as part of the efficient
allocation of capital. The report notes that the financial
sector would likely wear the cost of extreme weather
events and other natural disasters as the result of
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TO ACCESS
the 2021
Intergenerational
Report
Over the past 30 years, productivity improvements in
Australia have led to over 80 per cent of growth in real
per-person gross national income. This is highlighted
as a key issue in Australia’s decline in assumed annual real
gross GDP increases over the next 40 years, to 2.6 per cent
from 3.0 per cent.
Although the report highlights that governments
will need to take the lead in building innovation and
technological advancement, it is individuals and
businesses that will need to use such improvements
to enhance Australia’s productivity growth.
Despite challenges posed by the COVID-19 pandemic,
the move towards remote working may have been the
impetus for productivity gains seen through successful
measures such as teleconferencing, remote
collaboration and the ability to network remotely.
Going forward, trusted advisers will need to ensure
that these changes are accurately measured and
improved upon, and that provisions are made for future
economic shocks. In response, the ability for the system
to support retirees and for retirees to support
themselves will also improve.
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