Retirement
How compulsory super champions low-income earners
Compulsory super has provided Australians with better savings and living standards since its inception – especially for low-income earners, new research has shown.
How compulsory super champions low-income earners
Compulsory super has provided Australians with better savings and living standards since its inception – especially for low-income earners, new research has shown.
Analysis from The Association of Superannuation Funds of Australia (ASFA) has found that the system “delivers tangible benefits to households across the income spectrum”, but it is of “extraordinary benefit to low-income earners in particular”.
The research has revealed that Australian households now have $500 billion in savings that they would not have otherwise saved, thanks to the scheme.
Of that, approximately $35 billion is comprised of the additional savings of workers in the bottom 20 per cent by income.
It also found that “compulsory superannuation has unambiguously improved the asset diversification of Australian households’ balance sheets”.
According to ASFA CEO Dr Martin Fahy, “The strength of Australia’s superannuation system is evident from the important role super is playing to help provide both short-term financial relief to people hardest hit by the COVID-19 crisis and investment capital critical to the economic recovery.”
Dr Fahy added that “Australians value a fair go for all, and we don’t leave people behind.”
“The research shows that superannuation shares the benefits of long-term wealth accumulation across our society and gives everyone the opportunity to retire with dignity.”
The CEO highlighted how compulsory superannuation enables all Australians to “share in the prosperity that is built on the backbone of their hard work sacrifice”.
“This must never be the preserve of the wealthy elite.”
ASFA also revealed that in the context of an ageing population, compulsory superannuation improves the sustainability of the Age Pension and takes pressure off of future federal government budgets.
Did you enjoy this article? You may also be interested in:
- Retiring soon and worried about your wealth? You aren’t alone
- Industry super slams government over guarantee freeze
- How to rebuild your super balance after COVID-19
RELATED ARTICLES
About the author
About the author
Superannuation
Rest strengthens digital engagement with new leadership appointment
In a significant move to enhance its digital member services, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Darran Arnott as General Manager, DigitalRead more
Superannuation
Aware Super earns adviser-ready fund accreditation under new national framework
In a significant development for the financial advice sector, Aware Super has been awarded the prestigious Adviser-Ready Fund accreditation. This recognition comes under a new national framework ...Read more
Superannuation
Superannuation overhaul: Payday Super set to enhance retirement savings for millions
In a significant shift set to impact the retirement savings of millions of Australians, the way superannuation contributions are paid is about to undergo a major overhaul. However, despite the ...Read more
Superannuation
Rest expands retail property portfolio with US$250 million investment in US real estate fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced a substantial investment in a US-based real estate fund, marking a strategic expansion of its retail property ...Read more
Superannuation
TelstraSuper and Aware Super merger advances with key agreement
In a significant development for the Australian superannuation sector, TelstraSuper and Aware Super have reached a pivotal milestone in their merger journey by signing the Successor Fund Transfer ...Read more
Superannuation
Rest applauds legislative reforms to boost superannuation for low-income earners
In a landmark move, Rest has expressed strong approval following the successful passage of legislation aimed at enhancing the Low Income Superannuation Tax Offset (LISTO) through ParliamentRead more
Superannuation
Rest promotes Rachel O’Connor to head fixed income team
In a significant move within Australia's superannuation sector, Rest, one of the largest profit-to-member funds in the country, has announced the promotion of Rachel O'Connor to lead its Fixed Income ...Read more
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
Superannuation
Rest strengthens digital engagement with new leadership appointment
In a significant move to enhance its digital member services, Rest, one of Australia's largest profit-to-member superannuation funds, has appointed Darran Arnott as General Manager, DigitalRead more
Superannuation
Aware Super earns adviser-ready fund accreditation under new national framework
In a significant development for the financial advice sector, Aware Super has been awarded the prestigious Adviser-Ready Fund accreditation. This recognition comes under a new national framework ...Read more
Superannuation
Superannuation overhaul: Payday Super set to enhance retirement savings for millions
In a significant shift set to impact the retirement savings of millions of Australians, the way superannuation contributions are paid is about to undergo a major overhaul. However, despite the ...Read more
Superannuation
Rest expands retail property portfolio with US$250 million investment in US real estate fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced a substantial investment in a US-based real estate fund, marking a strategic expansion of its retail property ...Read more
Superannuation
TelstraSuper and Aware Super merger advances with key agreement
In a significant development for the Australian superannuation sector, TelstraSuper and Aware Super have reached a pivotal milestone in their merger journey by signing the Successor Fund Transfer ...Read more
Superannuation
Rest applauds legislative reforms to boost superannuation for low-income earners
In a landmark move, Rest has expressed strong approval following the successful passage of legislation aimed at enhancing the Low Income Superannuation Tax Offset (LISTO) through ParliamentRead more
Superannuation
Rest promotes Rachel O’Connor to head fixed income team
In a significant move within Australia's superannuation sector, Rest, one of the largest profit-to-member funds in the country, has announced the promotion of Rachel O'Connor to lead its Fixed Income ...Read more
Superannuation
Employment Hero raises concerns over superannuation bill's impact on small businesses
Employment Hero has raised significant concerns regarding the implementation of the proposed Supporting Choice in Superannuation and Other Measures Bill, which was recently recommended for passage by ...Read more
