Australian super system a global model
The Australian superannuation system represents a model worth emulating in other countries, according to a new global report issued by State Street Corporation.
The State Street Vision report, issued this week, claims many aspects of the Australian system, particularly defined contributions, are worthy of consideration by other nations where retirement planning remains a contentious social issue.
The State Street analysis said the defined contributions age was dawning on pension markets across the globe and that, as a result, global retirement markets were facing similar concerns about the implications of shifting investment risk onto the individual.
It said the recent financial crisis had highlighted many of the issues and prompted heightened sensitivity to risk on the part of plan sponsors and participants.
In this context, the State Street report said Australia was among the highest ranked nations in terms of governance, risk protection, communication and prudential regulation.
Commenting on the report, State Street Global Advisors' Australian managing director, Rob Goodlad, said it highlighted the success of the Australian system but added it was crucial that it remained viable for all investors with good returns, low risk and peace of mind.
“Once the Government has review all relevant reports, I hope it will conclude there is a good case to increase the employer superannuation levy from 9 per cent to around 12 per cent to ensure that superannuation is well-funded so Australians can have security in their retirement,” he said.
AUTHOR
Mike Taylor
Recommended for you
Results are out for the latest sitting of the ASIC financial advice exam, with the pass rate falling for the second consecutive sitting.
Adviser losses for the end of June have come in 143 per cent higher than the same period last year, and bring the total June loss to over 350.
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
