The Financial Services Council is calling for pension reform as part of its Federal Budget submission, including making access to the Age Pension more stringent.
The FSC is recommending a review of the generosity of income and asset tests for the pension, as well as assessing whether the long-term cost of the pension is sustainable.
According to the FSC, a couple with $1 million in assets and an annual income of $60,000 is still eligible to receive a partial pension payment as a result of the current eligibility rules.
“It’s time to assess whether this is an appropriate spend of government funds,” chief executive officer of the FSC, John Brogden ,said.
The FSC 2014/15 pre-budget submission also includes calls to lift the superannuation preservation access age from 60 to 62 years old, reducing the gap for pension eligibility from seven to five years.
“This would have a significant positive budget outcome and also reduce the national private retirement savings gap by $400 billion,” Mr Brogden said.
The FSC says these recommendations, along with others in its submission, are aimed at “improving the budget bottom line, red tape reduction and promoting the growth and export of financial services”.