Retirement
Aussie super contributions top of the pack
Australia’s pension system has been marked as the fastest-growing over the last 20 years, courtesy of its compulsory superannuation program.
Aussie super contributions top of the pack
Australia’s pension system has been marked as the fastest-growing over the last 20 years, courtesy of its compulsory superannuation program.

Willis Towers Watson’s Global Pension Asset Study, released on Sunday, revealed that the Australian superannuation system has grown faster than the other 21 countries surveyed.
These other countries included the UK, the US, China, South Korea, France, Germany, India, Italy, the Netherlands and Japan.
The report found that Aussie pension fund assets had grown by 7.1 per cent per annum in Australian dollars over the last 10 years.
Over the last 20 years, growth in Australian pension assets has been 12.1 per cent per annum.

Australia also has the second-highest ratio of pension assets to GDP, at 138 per cent. This figure is flanked by the Netherlands’ 194 per cent and Switzerland’s 133 per cent.
“The critical features in this success have been government-mandated pension contributions, a competitive institutional model and the dominance of [defined contributions],” the report argued.
According to the study, Australia in 2017 had the highest proportion of defined contribution to defined benefit pension assets, as 87 per cent of its total pension assets lie in defined contribution funds.
A defined benefit plan is a plan in which the pension amount is paid by the employer and is a set payout. A defined contribution plan is where the worker puts aside the money.
“We would expect defined contribution assets to become larger than defined benefit assets within the next two years,” Willis Towers Watson head of North America investments Steve Carlson said.
“With defined contribution models in the ascendancy, it is important that governance issues and the shift in risk to the end saver are closely monitored, without regulation becoming a burden and hindering the ability of defined contribution plans to deliver optimal outcomes.
“In addition, traditionally defined benefit-focused countries are showing signs of a shift toward adopting defined contribution pension plans.”
To Willis Towers Watson global head of investment content Roger Urwin, the regulation challenge for defined contribution assets is compounded by ageing populations around the world.
He said the main question is how countries with those ageing populations will accommodate increased benefit payments.
“The challenges faced by pension funds are complex. Our research suggests that pension plans must consider and address several key issues, such as: regulation; changes in the available investment universe; new investment methods; and how to measure progress and success of a pension plan,” Mr Urwin added.
“There is also the developing issue of true integration of ESG, stewardship and sustainability within overarching investment strategies.
“These funds have given more attention to sustainability issues over time and have become more conscious of the footprints they leave on the world. Looking ahead, it seems that the shift in their style of fiduciary capitalism will act as a positive stabilising influence on the world’s financial system.”

Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more

Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more

Superannuation
Australia's super test dilemma reform could boost long-term gains while keeping accountability sharp
APRA’s latest performance test results have reignited a structural debate: can Australia hold funds to account while still backing the nation’s long-horizon investment needs? With the government ...Read more

Superannuation
Super funds rethink strategy as APRA's performance test hits a fork in the road
The latest performance test results have reignited debate over Australia’s superannuation benchmarking regime and prompted a formal government review. Behind the headlines, boards are quietly rewiring ...Read more

Superannuation
Aware Super enhances digital tools for financial advisers, boosting efficiency and client engagement
Aware Super has unveiled a suite of new digital features designed to streamline the workflow for financial advisers and their clients. This significant upgrade includes direct data feeds to Xplan and ...Read more

Superannuation
Super funds flip the script as APRA's performance test sparks strategic overhaul
Australia’s performance test has lifted the floor on retirement outcomes—and divided the industry in the process. After early shockwaves, failure rates have fallen and fees have trended down, but ...Read more

Superannuation
Rewiring Australia’s super performance test: from compliance brake to capital engine
Can an accountability tool double as a nation-building lever? Canberra’s review of the superannuation performance test aims to preserve member protection while freeing funds to back long-dated assets ...Read more

Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more

Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more

Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more