Good afternoon ladies and gentlemen, and thank you for being here. We meet today on the land of the Gadigal people of the Eora Nation, and I pay my respects to their Elders both past and present.
I would like to acknowledge AMCHAM Governor, Joseph Scarf and event sponsor, Declan Boylan from Seven Consulting as well as my NAB and MLC colleagues in the audience.
I’d also like to thank the American Chamber of Commerce for asking me to speak on this most topical of subjects: the economic challenges for Australia and our ageing population, and the important role the wealth industry – my industry – has to play in securing a prosperous future for our nation and our people.
Every Australian deserves to retire in comfort after years of working hard. For 128 years, we have played a key role in helping Australians “Save Retirement”.
We’ve assisted them create wealth; providing trusted advice as they plan for their retirement.
We’ve protected their wealth and financial security through life insurance and income protection.
But, with more than half of retirees outliving their retirement savings, the challenge ahead for the wealth industry and the Government is enormous.
The recent release of the Federal Government’s Intergenerational Report considers the nation’s long-term sustainability over the next 40 years and how
Australia’s age profile and population size could impact economic growth, workforce and our public finances.
It is fascinating reading. But it should also serve as a wakeup call.
By 2055, the average Australian woman will live to around 97, and men can expect to live to 95.
In the past, we considered ourselves – and we were – a relatively youthful country. In 1975, for example, there were just 122 people aged over 100 across Australia.
Forty years from now there will be around 40,000 people aged over 100, and remarkably, nearly 2 million Australians aged over 85.
This demographic change won’t just influence who we are, and how we see ourselves as a nation, but also our whole retirement system and the drivers of the Australian economy.
The demographic shift has significant repercussions for how we prepare to meet the needs of an ageing nation in future, and also for our current approach to the accumulation of retirement savings, income in retirement, and when people exit the workforce.
For me, and indeed for the wealth industry, this presents both great opportunity and great responsibility.
THE WEALTH ISSUES
It is timely at this point to go to the recent challenges facing the wealth industry, and in particular issues involving our business.
This is relevant because if we are to play a key role in helping Australians meet their ageing needs, they must trust our advice.
Our company has a proud track record of providing leadership in the financial advice industry.
