Retirement
‘Superannuation has never been so important’: Sector hits back
Australia’s superannuation system is world class, the sector’s peak body has said, hitting back at what it calls “misleading” and potentially damaging analysis.
‘Superannuation has never been so important’: Sector hits back
Australia’s superannuation system is world class, the sector’s peak body has said, hitting back at what it calls “misleading” and potentially damaging analysis.
The Association of Superannuation Funds of Australia (ASFA) has slammed “misleading analysis” of the retirement savings system as potentially have a damaging effect on Australians’ retirement outcomes.
“Far from lagging behind the rest of the world, the evidence is that Australian funds have delivered superior returns,” the association said in a statement on Saturday.
It pointed to OECD figures finding Australian funds had the highest average investment returns over the five years to the end of 2017.
ASFA also noted that returns over the last five years have averaged 10.4 per cent after fees, higher than the 8.2 per cent rate of inflation.
“It is important to compare like with like when making fee comparisons. For example, investing in government bonds may come with a lower fee, but Australian super funds achieve high returns from unlisted infrastructure, property and other investments and these cannot be obtained by investing in indexed funds,” ASFA said.
“Furthermore, fees in Australia have reduced over the past five years following the introduction of MySuper and other reforms.”
The system is sustainable, ASFA continued, noting that this metric is of crucial importance. It pointed out that Greek, Spanish and Italian systems’ high replacement rates are unsustainable and have triggered social unrest.
“The Australian system is sustainable and is projected to remain so over the next 30 years, with superannuation progressively doing more of the heavy lifting, as budgetary constraints impact age pension entitlements. Superannuation has never been so important to current and future generations,” the association said.
“The Australian superannuation system is one of the very best in the world and while there is always room for improvement, it is important to get the facts straight, because not doing so simply reduces confidence in the system, disengages the community and leads to worse outcomes in retirement.”
The strident defence comes as the sector battles claims that it is "outdated" and suffering from "structural flaws", as a recent Productivity Commission report outlined.
The Australian Prudential Regulation Authority has also warned that super funds' misrepresentations of cash holdings could be misleading savers.
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