InvestSMART
The Intelligent Investor Growth Fund is listing on the ASX. Initial Offer now open

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


Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles