Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Retirement

Industry Super disputes Grattan’s claims

By Cameron Micallef · February 04 2020
Reading:
egg

Retirement

Industry Super disputes Grattan’s claims

By Cameron Micallef
February 04 2020
Reading:
egg
Industry Super chief executive Bernie Dean

Industry Super disputes Grattan’s claims

author image
By Cameron Micallef · February 04 2020
Reading:
egg
Industry Super chief executive Bernie Dean

A superannuation industry body has hit back following Grattan Institute’s suggestion that raising compulsory superannuation will be bad for everyday Aussies.

According to Industry Super Australia (ISA), the Grattan Institute’s claims that workers overwhelmingly bear the burden of increases in compulsory superannuation through lower wage growth are unfounded, with members being worse off if the guarantee is not raised.

According to ISA chief executive Bernie Dean, “The Grattan Institute overestimates contributions, overestimates payouts, makes half the population live too long, and fails to reflect the distribution of retirement savings and the persistence of low balances.”

ISA said independent research by economist Jim Stanford showed no evidence of a one-to-one trade-off between super contributions and wage growth. 

Mr Stanford found that there is no visible correlation between increasing in the superannuation guarantee rate and low wages, and no evidence to suggest that freezing the SG rate will increase wages by the same amount.

Advertisement
Advertisement

“This report is nothing new. Grattan came to this flawed conclusion last year and have now come back with cherry-picked information to support a preconceived fantasy view of the world that models part-time workers, the self-employed and women out of existence,” Mr Dean said.

ISA analysis showed that more than 8 million Australians could be worse off in retirement if the super rate is cut, losing more than $14.1 billion in super a year, or around $1,630 a year for the average person.

For an average 30-year-old couple working full-time, detailed modelling showed cutting the SG increase would deprive them of up to $200,000 in super by the time they retire.

“The only way to give Australians dignity, choice and control in their retirement is by the government raising compulsory superannuation,” Mr Dean said.

Industry Super disputes Grattan’s claims
Industry Super chief executive Bernie Dean
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.