Australian Business Leaders Increasingly Less Confident

Australian business leaders are less optimistic about the country being able to meet the challenge of an ageing population and in particular superannuation according to the results of a survey.

The survey results suggest that less than half of all business leaders were less confident, and that only 44 per cent of chief executives expressed confidence in the Australian government’s policy, with many of those worried that the negative effects may be greater than expected.

The 2010 CEO Survey was conducted by the Financial Services Council and PricewaterhouseCoopers (PWC).

Andrew Wilson of PWC says that by the year 2050, nearly one out of every five Australians would be over 65 and many would have to begin drawing on retirement savings.

“This may have far-reaching implications on the economy as the amount of money flowing out of super funds begins to exceed the amount of money flowing into them,” he said.

According to Mr. Wilson, the beginnings of a draw down on retirement savings may have a marked impact on equity markets and economic growth, as it would signal the start of a trend which would see investors shift their assets from higher risk long term investments, into shorter term more conservative ones.

Many business leaders surveyed said that an increase in the mandatory superannuation guarantee, and a widening of the availability of advice would be the best way to improve the adequacy of retirement savings.

Nearly 95 per cent of those polled felt a lack of confidence in Australia’s approach to infrastructure, saying they worried over the challenge that would exist in funding large scale infrastructure projects.

“It is clear that if Australia continues with its current approach to funding we will fall well short of meeting our infrastructure needs both now and into the future,” Financial Services Council chief executive John Brogden said.

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