Superannuation adequacy plan to improve

The Association of Superannuation Funds of Australia (ASFA) will provide the Government with a plan to improve the adequacy of super for all Australians.

Speaking at the Institute of Actuaries superannuation policy forum, ASFA director of policy and industry practice Melinda Howe said the adequacy “expectations are very high”.

She said the majority of Australians indicated that they would need around $50,000 or so a year to retire comfortably.

Howes also said that while the Government contribution rate might be okay for some people on a lower income, for many Australians this was not enough.

ASFA’s plan to be put to the Government also recognises that many Australians have substantial periods out of the work force or in part-time employment, perhaps due to family commitments. The plan includes measures designed to help those with “broken work patterns” and would “let people catch up on super”.

Australian Institute of Superannuation Trustees (AIST) chair, policy committee, Sandy Grant said we need to make sure “we do nail the question of adequacy”, but added that he does not think a “one-size-fits-all approach is appropriate”.

He said the AIST believes there is scope for the Government to give greater attention to lower income earners.

Speaking to industry representatives at the forum, he said “we need to think beyond who we are and think of the wider community”.

He also said it was important to get the integration between the three pillars of voluntary savings, compulsory super guarantee and the age pension right.