Retirement
Recent superannuation commentary ‘poor’, ‘without context’
Recent commentary surrounding the effectiveness of Australia’s superannuation system is poorly researched or presented without context, according to new analysis.
Recent superannuation commentary ‘poor’, ‘without context’
Recent commentary surrounding the effectiveness of Australia’s superannuation system is poorly researched or presented without context, according to new analysis.
Rice Warner has criticised research from a number of thinktanks in the presentation of its data around retirees and pension access.
While acknowledging that in some instances this was correct, it was not presented with the full context.
To provide an example, it said that while Challenger’s report noting that half of 67-year-olds are not accessing the pension was correct, it was incorrectly represented because 67-year-olds are still earning an income, so they are not actually self-funded retirees.
Rice Warner also questioned the Grattan Institute’s findings, which argued that an increase in the superannuation guarantee (SG) would see the government and the middle-class facing increased costs.
Rice Warner’s own modelling considered that superannuation will do its job in reducing reliance on the Age Pension.
It has argued that such an increase would reduce the expected burden of older Australians on the GDP from 2.6 per cent to 2.1 per cent by the end of the century.
It would also enable dependence on the Age Pension to fall in the foreseeable future.
To completely remove the Age Pension, Rice Warner has estimated that compulsory superannuation levels would need to be increased up to 15 to 20 per cent.
It flagged that at a rate of 10 to 12 per cent, it would shift the burden primarily to super with some support from the Age Pension, which Rice Warner argued would be an effective system.
The real-world reasoning for dependency levels
Rice Warner further noted that low levels of dependency at younger retirement ages is reflective of higher levels of workforce participation at these ages.
This is opposed to the impact of the means test alone, it said.
For example, of those aged 66, Rice Warner estimated that around 17 per cent are still in employment, while only 36 per cent are truly self-funded.
Looking to those five years older, at age 71, the proportion living independently of the pension is much lower.
According to Rice Warner, at this age, 5 per cent are employed and just 28 per cent are self-funded.
This is reportedly proof that consumption over time pushes some retirees onto part-pensions.
RELATED ARTICLES
About the author
About the author
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
Superannuation
Expanding super for under-18s could help close the gender super gap, says Rest
In a push to address the gender disparity in superannuation savings, Rest, one of Australia's largest profit-to-member superannuation funds, has called for a significant policy change that would allow ...Read more
Superannuation
Employment Hero pioneers real-time super payments with HeroClear integration
In a significant leap forward for Australia's payroll and superannuation systems, Employment Hero, in collaboration with Zepto and OZEDI, has successfully processed the country's first ...Read more
Superannuation
Rest launches Rest Pay to streamline superannuation payments and boost member outcomes
In a significant move aimed at enhancing compliance with upcoming superannuation regulations, Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled an innovative ...Read more
Superannuation
Rest appoints experienced governance expert to bolster superannuation fund
Rest, one of Australia's largest profit-to-member superannuation funds, has announced the appointment of Ed Waters as the new Company Secretary. Waters, who brings with him over 15 years of extensive ...Read more
Superannuation
Small businesses brace for cash flow challenges as Payday Super becomes law
With the new Payday Super legislation now enacted, small businesses across Australia are preparing for a significant shift in how they manage superannuation contributions. The law, which mandates a ...Read more
Superannuation
Rest launches Innovate RAP to support fairer super outcomes for First Nations members
In a significant move towards reconciliation and inclusivity, Rest, one of Australia's largest profit-to-member superannuation funds, has unveiled its Innovate Reconciliation Action Plan (RAP)Read more
Superannuation
Payday super legislation promises fairer retirement for part-time and casual workers
In a landmark development for the Australian workforce, the recently passed Payday Super legislation is set to transform the retirement landscape for countless part-time and casual workersRead more
Superannuation
Payday Super passes as Employment Hero, OZEDI and Zepto unite to help small businesses meet new seven-day payment rule
With the Payday Superannuation Bill officially passing through Parliament, Australian businesses are now less than eight months away from a major shift in how superannuation contributions are made — ...Read more
