If the Abbott government seriously wants to reign in costs it should design policies that help people become self-funded retirees, rather than tinkering around the edges by pushing the pension age to 70.

A key aspect of the federal budget is cutting welfare, including lifting the retirement age to 70 in 2035 to curb an anticipated explosion in age pensions.

Illustration: John Spooner.

When this is put into the context of the government's plans to wind back the future of financial advice reforms (FOFA), it seems the right hand doesn't know what the left hand is doing. Put simply, the Coalition's plan to amend FOFA could create an environment that leaves people with less money to retire on, not more, which will put stresses on the welfare system.

It is understood the Coalition is getting close to unveiling its intentions for FOFA after being forced to put its amendments on hold after former minister Arthur Sinodinos stepped down from his role amid an inquiry by NSW's Independent Commission Against Corruption into a company of which he was chairman.