New employment models could stifle super savings

New employment models could stifle super savings

Bernie Ripoll, contract work, freelancer, freelance work, gig economy, superannuation, super savings, retirement planning, retirement management, retirement savings, wealth management

The ways Australians work is changing in the face of new technologies and lifestyles, but these employment models could negatively impact the amount invested in the superannuation system, a former politician has cautioned.

Bernie Ripoll, who has previously served as an MP for the Labor Party, said the rise of contract and freelance work and the impact technology was having in the workforce could affect the super system.

Speaking at the Class Connect 2017 Conference, Mr Ripoll said while industry research companies such as Rice Warner have projected that national superannuation savings will reach $9.5 trillion by 2035 this is “only a linear extrapolation”.

 

“Can we really expect things to just stay the same? That’s just a quantum number,” said Mr Ripoll.

“For example, this number doesn’t explain what share of the pie each sector of the superannuation industry will have. Will the industry still be divided roughly into thirds? A third in retail funds, a third in industry funds and a third in SMSFs?

One of the other unpredictable elements of this projection he said is the impact of the changing nature of work and the impact of technology on employment with people engaging more in dispersed work patterns such as contract work or freelancing, said Mr Ripoll.

“The chief executive of ASFA, Martin Fahy recently highlighted the need for superannuation funds to become more personalised and better educate and engage with members, in order to remain relevant,” he said.

“It’s not just a given that the superannuation guarantee and the way people work is going to stay the same, the future might be different. So we’re predicting it’s going to be $9.5 trillion in the future and that be the case, but it may not come from the same sources.”

New employment models could stifle super savings
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