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Speaker 1: You're listening to a share these podcast. The PM's Business

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Speaker 1: Advisory Council. Basically, they were saying in two thousand, the

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Speaker 1: three percent rate creates this false impression that'll do it

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Speaker 1: and it's not even near enough, is it really?

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Speaker 2: Yeah, that was I was going to make that point,

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Speaker 2: Like the first order impact is, you know, we need

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Speaker 2: to save more. But the second one was this false

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Speaker 2: sense of security that came with the government saying that

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Speaker 2: the minimum of three percent, you know, is the people said, oh,

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Speaker 2: that's the gold standard, that's what we should follow and

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Speaker 2: we'll be okay. And then you'd hate to sort of

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Speaker 2: fast forward by forty years and be like, oh, I

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Speaker 2: feel like I, you know, should have been told.

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Speaker 1: More so lifting it. And I guess that panel was saying, hey,

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Speaker 1: you want to look at a plan. It's pretty much

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Speaker 1: we were at at the moment three and a half

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Speaker 1: about now I think four, but they were pushing it

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Speaker 1: all the way to five and that was five from employer,

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Speaker 1: five from employee, and a little bit more aggressively on

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Speaker 1: the employer to start with as well, is that what

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Speaker 1: we need to be doing?

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Speaker 3: Yes, I think we should be tracking that way, and

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Speaker 3: of course you can you're talking about the compulsory levels

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Speaker 3: as well. You can of course contribute six, eight or ten.

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Speaker 3: Could it be more? Should it be more? Quite possibly?

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Speaker 3: And you look and we're probably going to get to

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Speaker 3: it anyway. But if you look at Australias, you four

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Speaker 3: point five trillion, they've got a bit of a head

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Speaker 3: start in nineteen ninety two. But yeah, for largest retirement

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Speaker 3: pool in the world. But it's been an incredible part

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Speaker 3: of their success story, but also really preparing people for retirement.

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Speaker 3: It's different the way it's laid out, but it's twelve percent.

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Speaker 3: So yeah, that's night and day versus what we have here.

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Speaker 2: There's a risk as in we're slightly concerned about that

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Speaker 2: as contributions go up, you're actually entrenched some inequality because

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Speaker 2: the high they go, the more chance there is that

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Speaker 2: people will actually opt out. Thirty percent of working age

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Speaker 2: people today are not contributing, and I think that a

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Speaker 2: lot of that will we choose to affordability of the

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Speaker 2: contributions is either food on the table this week or

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Speaker 2: saving for retirement and so in twenty years time. Yeah,

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Speaker 2: but some people the acute issue is today and as

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Speaker 2: they go up, given the scheme is based on incentives.

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Speaker 2: So I'm incentivized by my employer's contribution, by my government contribution.

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Speaker 2: But if I need the if I simply can't afford

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Speaker 2: to contribute, I'm going to miss out on those incentives.

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Speaker 2: And I think if we think that just increasing contributions

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Speaker 2: is solely going to solve the problem, I think what

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Speaker 2: you're going to see is the people who are largely

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Speaker 2: going to be okay already are going to get wealthier

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Speaker 2: in retirement, and the people who are largely not okay

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Speaker 2: are actually going to be in a worse position. So

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Speaker 2: there is that risk. Like I'm not saying it's going

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Speaker 2: to play out that way, but I think we should

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Speaker 2: be concerned about creating a long tail of wealth. And

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Speaker 2: can we say, but leaving behind that thirty percent of

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Speaker 2: people who aren't contributing.

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Speaker 3: And yeah, certainly, yeah, great points. It needs to be

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Speaker 3: a plan also from see the employer's perspective as well.

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Speaker 3: And we're not saying it's going to go from three

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Speaker 3: and a half to twelve and two years or anything

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Speaker 3: like that, but yeah, plan for sure. And then you know,

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Speaker 3: from employers, I mean, obviously, if you're a small business

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Speaker 3: and you've suddenly got a rich up your the rates

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Speaker 3: that you're sort of paying, and that's tough as well.

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Speaker 3: So there needs to be something on the other side.

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Speaker 3: That all needs to be worked out by politicians and

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Speaker 3: the likes.

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Speaker 1: But are we up for it? Are we really up

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Speaker 1: for it though? Are we really ready to be saying

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Speaker 1: to businesses and to people, you might have to sacrifice

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Speaker 1: some of your salary. You might have to you know,

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Speaker 1: trim your costs even further and maybe not bump your

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Speaker 1: prices up quite too quickly, thank you, either to try

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Speaker 1: and make this work.

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Speaker 3: Oh, there have to be some sort of tax relief

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Speaker 3: or something along those lines. We would have thought, Yes,

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Speaker 3: there has to be a you know, a care as.

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Speaker 2: It were, investing involves the risk you might lose the

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Speaker 2: money you start with. We recommend talking to a licensed

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Speaker 2: financial We also recommend reading product disclosure documents before deciding

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Speaker 2: to invest.

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Speaker 1: Cheesy's Investment Management Limited is the issuer of the Chasis

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Speaker 1: Keepisaver scheme. The product disclosure statement for the Cheesis Keepy

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Speaker 1: Service Scheme has been lodged and may be viewed on

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Speaker 1: the disclosure register or on our Documents page.