Retirement
Industry Super disputes Grattan’s claims
A superannuation industry body has hit back following Grattan Institute’s suggestion that raising compulsory superannuation will be bad for everyday Aussies.
Industry Super disputes Grattan’s claims
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.
“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.
RELATED ARTICLES
About the author
About the author
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Age Pension increase prompts Australians to review their finances
The increase in the Age Pension, which takes effect today, should serve as a prompt for many older Australians to ensure they're maximizing their income as cost-of-living pressures persist, according ...Read more
Superannuation
Retirement reimagined as Australian optimism meets inflation worries in 2023 super fund insights
The latest reports on retirement confidence among Australians present a spectrum of sentiments, with fresh data revealing surprising optimism in some quarters while exposing underlying concerns in ...Read more
Superannuation
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save. Read more
Superannuation
Super funds eye 6.5% return in 2023, despite a rocky start
As the year draws closer to its climax, Chant West unveils its projection for super funds in what can only be described as a year of economic ebbs and flows. Read more
Superannuation
A deep dive into Australia’s superannuation system
Australia has a robust retirement savings system known as superannuation designed to provide financial security to Australians in their post-work years. Read more
Superannuation
50,000 super fund members impacted by data breach
Around 50,000 member records were impacted by the breach that took place earlier this month. Read more
Superannuation
Two super funds tipped to reach $1tn by 2040
KPMG has released the findings from a new review. Read more
