Retirement
How will super be used in the next financial crisis?
The CIO of Australia’s largest superannuation fund has highlighted the strength of the current scheme in supporting millions of Australians, but has urged for clarity before the next financial downturn hits markets.
How will super be used in the next financial crisis?
The CIO of Australia’s largest superannuation fund has highlighted the strength of the current scheme in supporting millions of Australians, but has urged for clarity before the next financial downturn hits markets.
AustralianSuper has so far had over 300,000 requests for early release of super and has paid out $2 billion to its members who have fallen under financial hardships due to the COVID-19 pandemic.
But while other super funds have warned on the need for policy stability in the wake of the scheme, AustralianSuper is unlikely to be the voice of change, despite having the most members.
“Do we think that the super system will be a vehicle for early access in the next downturn or the one after, and does that change the way we manage portfolios?” CIO and deputy CEO Mark Delaney told media during a Bloomberg address.
“Part of the reason you can have a long-term investment horizon is because you consider the money is going to be there for a long time.
“But early access on the size and scale we’ve seen this time has been no problem,” Mr Delaney noted.
He warned, however, that while the early release super had been helpful to Australians experiencing financial hardship through the COVID-19 crisis, it would still have consequences for their retirement.
“Early release has worked for people; it’s given them a chance to get some money,” Mr Delaney said. “It has come at the cost of the long-term retirement savings, and that’s something they’ve got to be conscious about and try to rebuild them as quickly as possible, but it has gone well.”
Critics of the policy have noted that Australia’s superannuation system should not be used to support the economy.
“Superannuation funds should not be used as an ATM when times get tough. I understand that these are unprecedented times and many Australians are facing real financial difficulties. But it is a shortsighted policy that will result in a short-term sugar hit to those affected at the expense of their super balances in 20 or 30 years’ time,” Betashares CEO Alex Vynokur said.
Did you enjoy this article? You may also be interested in:
- Superannuation is down but not out
- Can accessing superannuation early close the retirement gap?
- Industry expert slams super release
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
