Australia's superior super
AUSTRALIA'S $1.3 trillion superannuation system has regained a second-ranked spot in a global measure of retirement savings schemes, coming in slightly behind the Netherlands for payments to retirees.
AUSTRALIA'S $1.3 trillion superannuation system has regained a second-ranked spot in a global measure of retirement savings schemes, coming in slightly behind the Netherlands for payments to retirees.But Australia could emerge as a clear winner if the government pushes ahead with its plans to lift the compulsory superannuation savings rate to 12 per cent from 9 per cent, according to the latest Global Pension Index."Australia is quite a robust system, we're relatively well funded, we're still putting additional money aside and we don't have the demographic pressures, which are extreme in other countries," said David Knox, a senior partner with Mercer, a superannuation advisory firm."But if we move in the direction of increasing the superannuation guarantee, increasing the workforce participation rate among older Australians . . . then we can actually become the first gold-standard system," he said.The index tracks public and private superannuation systems across 16 countries, from Europe, Latin America and parts of Asia.The rankings are compiled through a combined measure of payout on retirement, whether a country can afford a scheme over time, and the level of trust in the superannuation system. ERIC JOHNSTON
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