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
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