Set up for failure
Any federal government move on superannuation risks setting the retirement system up for failure, national accounting firm Chan & Naylor warns. A $1 million pension fund in today's money will need to be at least $2.5 million in 30 years' time, it says. "Australians are going to need more retirement income and the government of the day is doing surprisingly little to help," Chan & Naylor director Ken Raiss says.
Australia's retail bond market is seeing a strong start to 2013, with companies queueing to borrow record amounts. Research firm East & Partners estimates as much as $17 billion could be raised. Helping demand is a massive rise in the number of Australians managing their own superannuation funds. They now account for $418 billion of the $1.4 trillion superannuation industry, an increase of more than 30 per cent in five years.
Thousands of retail investors in the Chinese city of Tianjin say they were tricked out of more than $500 million by sellers of illegal wealth-management products. Scam private equity businesses mushroomed in China after a government drive to promote the industry in 2009, leading to a flood of licences for new businesses being issued without proper regulation.