Retirement
‘Perverse’ super system needs overhaul
Superannuation is complex, intrusive, contains anomalies, produces perverse incentives, and sometimes unfair, according to a number of Australia’s leading superannuation and retirement experts.
‘Perverse’ super system needs overhaul
Superannuation is complex, intrusive, contains anomalies, produces perverse incentives, and sometimes unfair, according to a number of Australia’s leading superannuation and retirement experts.
Actuaries Institute’s newly released “Green Paper” has seen authors Dr David Knox, Dr Anthony Asher and Michael Rice express concern that the nation’s current superannuation system has “obvious” shortcomings.
The paper highlighted that “as an increasing proportion of the population move from the accumulation to the pension phase, problems that beset the system will become more apparent”.
According to Actuaries Institute’s chief executive, Elayne Grace, an overhaul is needed to ensure retirees can have access to a regular income stream, savings to cover unexpected expenses, and protection against longevity, inflation and market risks.
She flagged that “the best system would take an integrated view across all sources of income and expenses for retirees”.
For her, and reflecting reform suggestions included in the green paper, this includes integration and consideration of the age pension, superannuation, the family home, aged care and health costs.
The system must also be simple enough that retirees who don’t or can’t access financial advice are able to make smarter choices, Ms Grace also reflected.
The green paper also acknowledged that costs of an ageing population must be shared equitably by the government and taxpayers.
It also emphasised the need for encouragement to be given to those who can afford to defer consumption to plan for their retirement.
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
